The Biden administration has announced a significant new export control strategy aimed at restricting advanced AI technology from reaching nations perceived as adversaries, particularly China. The "AI Diffusion rule" categorizes countries into two groups: those that will have relatively open access to the most advanced AI chips and models, and those that will need special licenses to acquire such technologies. This rule is set to be enforced by the Commerce Department’s Bureau of Industry and Security and is the first to limit access to powerful AI models.
Commerce Secretary Gina Raimondo emphasized the importance of maintaining U.S. leadership in AI development and chip design as vital for national security. The list of trusted nations includes allies such as the UK, Canada, and Australia, among others. Companies from non-arms embargoed nations can obtain up to 1,700 advanced AI chips without special permissions and may apply for licenses to acquire more or access closed models, contingent upon meeting physical and cyber-security requirements.
Notably, the rule does not apply to supply chain activities like design and manufacturing of chips, nor does it restrict open-source AI models. However, the new restrictions introduce unprecedented limitations on access to advanced AI models for countries like China, Iran, and North Korea, which were already prohibited from obtaining advanced chips.
Raimondo highlighted the dual-use nature of the technology, which, while beneficial for commercial applications, could also be exploited by adversaries for military purposes. This measure has raised concerns within the tech industry, with Nvidia calling the rule "unprecedented and misguided," suggesting it could harm U.S. global competitiveness instead of improving security.
The rule coincides with ongoing efforts to prevent China from advancing its AI capabilities, which U.S. officials believe lag behind their own by approximately six to 18 months. The administration views this timing as critical, indicating that rapid advancements in AI could reshape economic and national security landscapes in the near future.
The introduction of this rule adds to a series of recent export controls aimed at extending restrictions on chip and technology exports to China, reflecting broader geopolitical tensions and concerns over technological supremacy.
