The Biden administration has recently introduced comprehensive updates to regulations governing the export of advanced artificial intelligence (AI) chips to China and other nations. These stringent measures aim to curtail China’s access to cutting-edge chips, crucial for developing AI technologies, while addressing national security concerns posed by dual-use AI applications. Here, we take a closer look at how the Biden administration is tightening the rules and the potential implications of these actions.
Capturing More Chips
Previously, regulations focused on two criteria: computing power and data transmission speed between chips. Given that AI systems require the integration of thousands of chips to process vast datasets, this approach was deemed essential. However, the emphasis has now shifted to computing power alone. This alteration broadens the scope of controlled chips, encompassing even Nvidia’s recent designs for the Chinese market. Moreover, chip manufacturers are now obliged to notify U.S. authorities when they sell chips just below the restriction limits, allowing officials to monitor their usage in large-scale AI applications.
Closing ‘Chiplet’ Loopholes
A critical concern for U.S. regulators is the emergence of “chiplets,” wherein smaller chip sections are assembled into a complete chip. This innovation raised fears that Chinese companies could exploit this technology to assemble larger chips that violate existing regulations. The new rules introduce a “performance density” limitation aimed at thwarting such circumvention attempts.
Blacklisting China’s Nvidia Challengers
Industry experts anticipate that if the U.S. restricts AI chip exports to China, Chinese firms will endeavor to fill this void in the market. To address this, U.S. officials have blacklisted two prominent Chinese chip startups, Biren and Moore Threads, which were poised to become domestic alternatives to Nvidia’s offerings. This move, which cuts them off from manufacturers like Taiwan Semiconductor Manufacturing Co, could significantly impede these startups’ progress.
Red Flags for Chip Factories
An additional measure involves the identification of chips containing 50 billion or more transistors and high-bandwidth memory as “red flags” for potential export licensing requirements. This threshold encompasses most advanced AI chips and aims to enable chip factories to detect attempts to circumvent regulations.
Expanded Reach
The scope of license requirements has been broadened, extending to the export of advanced chips from China and Macau to all 22 countries subject to U.S. arms control embargoes. This expansion also includes companies whose ultimate parent companies are based in these countries, preventing offshore subsidiaries from procuring restricted chips.
These measures underscore the United States’ commitment to regulating the export of AI chips, reflecting both national security concerns and the competitive landscape in the global AI industry. As the AI sector continues to evolve, these rules will likely play a significant role in shaping its trajectory.
