Biden Administration Introduces New AI Chip Export Controls

By Song Sang-ho

On January 13, the Biden administration unveiled new restrictions on the export of artificial intelligence (AI) chips, marking an effort to prevent advanced technology from reaching China, Russia, and other countries deemed as potential threats to national security.

This announcement came just a week before the administration's term concludes, presenting an interim final rule that exempts sales to 20 key U.S. allies and partners, such as South Korea, from these restrictions. For various other nations, the new regulations impose limits on the computational power they can acquire.

Secretary of Commerce Gina Raimondo emphasized that this policy aims to foster a trusted global technology ecosystem, which can help safeguard against the national security risks tied to AI. It is also designed to ensure that these controls do not hinder innovation or undermine U.S. leadership in technology.

The list of 20 allies includes Japan, Australia, Canada, Germany, France, and New Zealand. Companies in these nations that meet high security and trust standards can obtain a "universal verified end user (UVEU)" status. This allows them to allocate up to 7 percent of their global AI computational capacity, which could amount to hundreds of thousands of chips, for use across the globe.

Entities lacking the verified end user status but located in non-allied countries may still procure significant amounts of computational power—up to the equivalent of 50,000 advanced graphics processing units (GPUs). This cap can be doubled to 100,000 GPUs if there is a formal arrangement that aligns with U.S. export standards.

Additionally, organizations that meet specific security requirements in non-concerned countries can apply for "national verified end user" status, facilitating their access to up to 320,000 GPUs over a two-year timeline.

Chip orders providing collective computational power equivalent to about 1,700 advanced GPUs do not require a license and are not counted against national chip caps. This category encompasses the majority of chip orders, especially those from universities and medical institutions.

The new rule is designed to ensure that advanced semiconductors sold internationally are not utilized by nations like China and Russia. However, it does allow for access to general-purpose applications across various sectors, including telecommunications and finance.

National Security Adviser Jake Sullivan stated that the rule enhances transparency for international partners and industry while addressing significant risks associated with national security that arise from potential circumvention by adversarial countries and actors.

Despite the government's intentions, many U.S. AI chip manufacturers have expressed opposition to the newly introduced regulations. They argue that it could obstruct their efforts to sell products in a market experiencing increased demand for AI technologies around the world.

Overall, these measures reflect the administration's ongoing commitment to protecting national security interests while navigating the complexities of the global technology landscape.

Biden, AI, chip, export, restrictions