Microsoft, Amazon, Meta Raise Alarm Over Proposed US AI Chip Export Limits

• U.S. tech giants warn Biden’s AI chip export rules could harm AI leadership.
• Proposed regulations target China but may benefit global competitors.
• Industry leaders call for more consultation and caution on the rule.

Leading U.S. tech companies, including Amazon, Microsoft, and Meta, have urged President Joe Biden to reconsider proposed regulations on global AI chip exports.

EKO HOT BLOG reports thatThe companies, represented by the Information Technology Industry Council (ITI), expressed concerns about the potential impact of the new rule, warning that it could weaken U.S. leadership in artificial intelligence.

The rule, which could be finalized as early as Friday, is part of an effort to restrict the sale of advanced AI chips to adversaries, particularly China, in order to limit their use in military applications. While the primary target is China, the regulations would also restrict access to U.S. AI chips for other countries, including Nigeria, which is working to advance its AI initiatives.

The U.S. Commerce Department’s proposed restrictions are aimed at preventing the enhancement of China’s military capabilities with AI technologies. However, industry leaders argue that the move could unintentionally allow global competitors to take the lead in the AI market.

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In a letter to U.S. Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman criticized the administration for rushing to finalize the rule in the final days of Biden’s presidency, just weeks before Donald Trump’s inauguration. He cautioned that hastily implementing such an important rule could lead to significant negative consequences.

While the industry acknowledges the importance of national security, Oxman emphasized the potential risks to U.S. leadership in AI and urged the administration to reconsider its approach. He called for the rule to be introduced as a proposed rulemaking to allow for broader consultation and discussion.

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The Semiconductor Industry Association also voiced its concerns, and Oracle’s Executive Vice President, Ken Glueck, criticized the rule in a blog post, claiming it would impose significant burdens on the global cloud computing industry.

As of now, neither the Commerce Department nor the White House have commented on the issue, leaving the industry uncertain about the economic and geopolitical impacts.

The proposed regulations come at a time when Microsoft is emphasizing the importance of U.S. leadership in AI to counter China’s growing influence in the sector.

In a January 3 blog post, Microsoft Vice Chairman and President Brad Smith highlighted the increasing competition between U.S. and Chinese AI technologies, particularly in developing countries. He compared the situation to the evolution of the telecommunications industry over the past two decades, where Chinese companies, supported by government subsidies, overtook Western firms. Smith warned that China is now using similar tactics in AI to secure long-term dominance in the sector.

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