NEW YORK (AP) – In light of feedback from the tech sector and various nations, the US Department of Commerce has rescinded Biden-era regulations that would have gone into effect Thursday, which aimed to restrict the export of certain artificial intelligence chips to designated international markets without federal consent.
“These new stipulations would have stifled American innovation and burdened companies with heavy regulatory requirements,” stated the Department of Commerce. This is outlined in the guidance.
Before stepping down, President Joe Biden set up an export framework designed to balance national security concerns regarding technology with the economic interests of domestic producers and other nations. The U.S. had previously limited exports to adversaries, including China and Russia. Some loopholes existed in these controls, and the regulations would have broadened the restrictions to include numerous other countries, such as those in the Middle East, which President Donald Trump is visiting this week.
The Biden Administration’s categorization of over 100 countries under export restrictions faced significant backlash from these nations, as well as from U.S. manufacturers like Nvidia and AMD. They argued that such limitations could inadvertently drive some countries to turn to China for AI technology instead of the United States.
During a Senate hearing last week, Microsoft President Brad Smith remarked:
Commerce Secretary Jeffrey Kessler announced on Tuesday that the Trump administration would work towards replacing the current minimal regulations governing AI, while simultaneously ensuring the protection of technology from adversaries. The administration noted that new regulations are forthcoming, but details have yet to be disclosed.
The European Commission expressed support for this change; spokesman Thomas Leisure contended that if Biden’s controls were implemented, “downgrading it to second-tier status would harm U.S. diplomatic relations with numerous countries.”
European Union nations should be able to acquire advanced AI chips from the U.S. without limitations, Regnier asserted.
“We collaborate closely, particularly in the security sector, to emphasize the economic opportunities of the United States rather than its security challenges,” he added in a statement.
Source: apnews.com