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Leading U.S. tech companies, including Amazon, Microsoft, and Meta, have called on President Joe Biden to reconsider a new regulation aimed at restricting the global export of AI chips.
The companies, under the banner of the Information Technology Industry Council (ITI), have expressed concerns that the proposed regulation could hinder U.S. leadership in artificial intelligence (AI).
The rule, which could be introduced as early as Friday, is part of the U.S. government’s broader strategy to limit the use of advanced AI technologies by adversaries, particularly China.
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The regulation would impose sweeping restrictions on the sale of AI chips to various countries, aiming to curb China’s ability to leverage AI in its military developments.
While the primary target is China, the new rule would also affect other countries, including Nigeria, which is actively advancing its AI initiatives.
The restrictions, proposed by the U.S. Commerce Department, are designed to prevent China from strengthening its military capabilities through AI technologies.
However, industry stakeholders argue that these restrictions could have unintended consequences, including losing ground in the global AI market to competitors from other nations.
In a letter to U.S. Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman cautioned against the hasty implementation of the rule, expressing concerns over the potential risks to U.S. leadership in AI.
“Rushing a consequential and complex rule to completion could have significant adverse consequences,” Oxman stated in the January 7 letter, which was obtained by Reuters. He emphasised the importance of balancing national security with the need to maintain U.S. dominance in AI.
Oxman urged the Biden administration to take a more measured approach and to issue the rule as a proposed rulemaking, allowing for broader consultation and deliberation before finalising it. This suggestion reflects the industry’s desire for a more transparent and carefully considered approach to the regulation.
The Semiconductor Industry Association (SIA) also voiced its opposition to the proposed rule, releasing a statement on Monday evening expressing concerns about the potential economic and geopolitical ramifications of such restrictions. Oracle’s Executive Vice President, Ken Glueck, also criticised the rule in a blog post, describing it as the “Mother of All Regulations on the commercial cloud industry” and warning that it would have far-reaching impacts on global cloud computing operations.
As of now, neither the U.S. Commerce Department nor the White House has commented on the concerns raised by the industry, leaving stakeholders uncertain about the potential outcomes of the regulation.
The debate surrounding the new AI chip export rule comes at a time when companies like Microsoft are pushing for stronger American leadership in AI. Microsoft, which recently announced plans to invest $80 billion in AI-powered data centres this year, has been vocal about the increasing competition between U.S. and Chinese AI technologies, particularly in developing nations.
In a blog post published on January 3, Microsoft’s Vice Chairman and President, Brad Smith, highlighted the growing rivalry between the two countries in the AI sector, particularly the way China is using government subsidies to advance its AI industry. He compared this strategy to China’s past success in the telecommunications industry, where Chinese companies overtook Western firms with the help of subsidies and government support.
Smith warned that China is now replicating this strategy in AI by subsidising access to critical technologies like chips and building local AI data centres in developing nations.
This approach aims to lock these nations into China’s AI ecosystem, creating long-term dependencies that could challenge U.S. national security.
