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Biden Administration Proposes New Framework For Exporting Advanced Computer Chips

President Joe Biden speaks in the Roosevelt Room at the White House in Washington, Friday, Jan. 10, 2025. (AP Photo/Ben Curtis, File)

The Biden administration has put forth a new framework for the exporting of advanced computer chips used in artificial intelligence development. This move aims to strike a balance between national security concerns and the economic interests of chip producers and other nations.

The proposed framework has raised concerns among chip industry executives who fear limitations on access to existing chips used in video games and restrictions on chips used in data centers and AI products in 120 countries, including Mexico, Portugal, Israel, and Switzerland.

Commerce Secretary Gina Raimondo emphasized the importance of preserving America's leadership in AI and related computer chip development, citing the critical role of AI in various sectors such as scientific research, automation, and national security.

The framework seeks to ensure that cutting-edge AI technology is developed within the United States and its closest allies, rather than being outsourced to other countries. However, industry groups have cautioned against hastily implementing rules that could disrupt global supply chains and disadvantage U.S. companies.

The proposed restrictions could impact access to chips used in video games and data centers, potentially affecting companies' ability to build data centers abroad. The framework includes a 120-day comment period, allowing for further input from stakeholders before finalizing the rules.

The framework outlines restrictions for certain countries while exempting key allies from limitations on chip imports. Countries like Australia, Canada, Japan, and the United Kingdom are among those without restrictions, while others face caps on chip imports.

Institutions in select countries may apply for special status to purchase advanced graphics processing units, with exceptions for specific sectors like universities and medical institutions. The framework aims to balance economic interests with national security goals, particularly in maintaining America's advantage in AI technology over global competitors.

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