The Biden administration has issued strict terms restricting the export of chips to China and other regions, with allies Taiwan, Japan, Canada, and 18 other countries not subject to restrictions.

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The White House announced on Monday a revised version of the restrictions on AI chip exports. Most countries classified as 'allies' of the United States are not restricted and only need to obtain a license to import GPU graphics cards from the United States. However, countries classified as 'non-allies' will be unable to obtain chips produced in the United States, including North Korea, China, Russia, and others.

The White House said in a statement on Monday that artificial intelligence is rapidly becoming the core of security and economic power, and the United States must decisively lead the transformation to ensure that AI technology can be used by the global AI ecosystem and to ensure that adversaries cannot easily abuse advanced artificial intelligence. The U.S. government is addressing the loopholes in the export restrictions on AI chips in 2022 and 2023 through combating smuggling and increasing AI Diffusion.

The US Department of Commerce has established a new framework to restrict chip exports.

The Department of Commerce Bureau of Industry and Security (BIS) has revised the new export control regulations for the Framework for Artificial Intelligence Diffusion, adding new restrictions on high-performance computing IC chips and artificial intelligence models, and seeking feedback.

The Ministry of Commerce and the Bureau of Industrial Security believe that expanding control measures are necessary to protect national security and diplomatic interests. The Ministry of Commerce has added new licensing terms and updated end-user authorization licenses in the database to ensure that domestically produced IC technology chips are provided to end-users and destinations that do not pose national security or diplomatic concerns. The new terms will take effect on January 13, 2025.

The substantive significance of the updated version of AI chip export restrictions

Including 18 US 'key' allies such as Taiwan, Japan, the United Kingdom, the Netherlands, and Canada will not be subject to restrictions on the export of artificial intelligence chips, while 24 military-controlled countries such as China, North Korea, and Russia will be completely banned from exporting chips. The main purpose of the Biden administration's updated terms is to restrict the computing power and technology of developing artificial intelligence chips in certain specific countries, which are considered to pose a national security threat to the United States.

NVIDIA produces Chinese version of the Hopper chip to comply with US export restrictions

According to Yahoo Finance, Nvidia also produces a specific version of the H20 Hopper chip that complies with U.S. trade restrictions on China and will not be affected by export controls. Ned Finkle, Vice President of Government Affairs at Nvidia, said that the U.S. government should study the artificial intelligence industry more carefully, and the Biden administration's AI Diffusion Rule does not have a deeper understanding of the overall environment.

In addition, the new provisions issued by the Biden administration will not take effect until 120 days later, giving Nvidia ample time to respond to the AI chip export ban. With only one week left until Biden steps down as President of the United States, there is a possibility that the AI framework and export restriction provisions may be updated again under the Trump administration.

Nvidia spokesperson says the Biden administration misled the American people

Nvidia's Vice President of Government Affairs, Ned Finkle, has issued a public statement stating that despite the Biden administration's 'Anti-China' stance, it is ineffective in enhancing US security. The new regulations will control technology globally, including widely used technology in mainstream gaming computers and consumer hardware. The new terms of the Biden administration will not alleviate any threats, but instead undermine US global competitiveness and disrupt American innovation that maintains its leading position.

The AI Diffusion Rule has a significant impact on the global AI ecosystem. It will not only affect diplomatic relations between countries, but also have a ripple effect on the business volume of peripheral hardware and software suppliers, factories, and distributors, adding some uncertainty to global economic development this year. Huang Renxun revealed to the media that he may meet with Trump. The author believes that formulating the 'Artificial Intelligence Security Dissemination Framework' will be the top priority. With the new framework, Nvidia, the entire technology industry, and the AI ecosystem will develop in a healthier direction. Regardless of who is in power, consensus on AI development is needed to create a win-win situation.

The Biden administration issued strict restrictions on the export of chips to China and other countries in this article. Allies such as Taiwan, Japan, Canada, and 18 other countries are not restricted. It first appeared on Chain News ABMedia.

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