Biden’s New AI Chip Restrictions: Innovation Saver or Industry Disruptor?

The White House proposal, announced on January 13, would restrict the sale of certain semiconductors to all countries except for 18 partners and allies.

The plan includes caps on chip exports to most countries, which limit shipments to 50,000 units per year, with possible extensions to 100,000 through government-to-government agreements.

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Some institutions might be allowed to purchase up to 320,000 chips over two years, while small orders of less than 1,700 units wouldn’t require approval.

Daniel Castro from the Information Technology and Innovation Foundation (ITIF) shared his criticism in a January 13 statement. He argued that forcing nations to choose between the United States and its competitors, particularly China, might drive other nations away.

Castro also warned that these restrictions might create regulatory burdens for US companies, which would give foreign competitors an advantage.

Ned Finkle, Nvidia’s vice president of government affairs, called the plan “misguided” in a company blog post.

Finkle argued that it would disrupt growth in the tech industry and harm innovation.

Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the US ahead.

However, Commerce Secretary Gina Raimondo defended the restrictions, citing the need to address security risks tied to AI technologies. On January 13, she stated that the policy aims to protect national security while allowing the US to maintain leadership in technology.

Meanwhile, UK Prime Minister Keir Starmer announced a 50-point AI action plan on January 13. What is it about? Read the full story.