On Monday, the US government announced a new round of regulations on global AI chip exports, dividing the world into roughly three tiers of access. The rules create quotas for about 120 countries and allow unrestricted access for 18 close US allies while maintaining existing bans on China, Russia, Iran, and North Korea.
AI-accelerating GPU chips, like those manufactured by Nvidia, currently serve as the backbone for a wide variety of AI model deployments, such as chatbots like ChatGPT, AI video generators, self-driving cars, weapons targeting systems, and much more. The Biden administration fears that those chips could be used to undermine US national security.
According to the White House, “In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses.”
The new rules build on previous chip controls from September 2022 and October 2023. The regulations will take effect in 120 days, extending into the incoming Trump administration.
A game of numbers
The new regulations set specific numerical limits on AI chip exports. While first-tier countries (the 18 key US allies) face no restrictions, countries in the second tier can receive up to 50,000 so-called “advanced computing chips,” with the possibility to double that cap to 100,000 if they sign technology security agreements with the US.
For most buyers, orders of up to 1,700 advanced chips will not require licenses or count against these national caps—a policy designed to speed up purchases by universities, medical institutions, and research organizations.