US tightens AI export rules to restrict access to advanced technology for certain nations

The United States has introduced stricter regulations on the export of artificial intelligence (AI) technology, targeting to retain advanced computing capabilities within the country and among trusted allies. This move aims to prevent nations such as China, Russia, Iran, and North Korea from acquiring cutting-edge AI chips and technology.

These new regulations, which will come into effect in 120 days, will limit the export of high-performance AI chips to most countries. However, close allies like Japan, the UK, and South Korea will have nearly unrestricted access to US AI technology.

Commerce Secretary Gina Raimondo stated that the restrictions are intended to maintain the US's leadership in AI development and chip design. She emphasized, “The US leads AI now, and it’s critical we keep it that way.”

The rules impose strict caps on the number of advanced chips that can be exported to most countries, while trusted allies such as the UK and Japan will not face these limitations. However, 120 other countries, including Singapore and Saudi Arabia, will have capped access. Additionally, arms-embargoed countries like China, Russia, and Iran are completely banned from receiving AI technology.

New controls have also been introduced for “model weights,” a crucial component of advanced AI systems that influences decision-making in machine learning.

Major technology companies such as Nvidia and AMD, which manufacture many of the affected AI chips, will experience significant changes in their global operations. According to a report by Reuters, Nvidia has criticised the regulations as excessive, arguing that they restrict technology already widely available in consumer devices. Oracle expressed concerns that these rules could benefit Chinese competitors by limiting the market reach of US companies.

US-based cloud service providers like Microsoft, Amazon, and Google will need to seek special approvals to export AI chips for constructing data centres in certain countries. Once approved, these companies will have to adhere to strict conditions, including security requirements and guarantees of ethical use.

The US government has been working for years to restrict China’s access to advanced AI technology, which could enhance military capabilities. These new rules are an effort to close loopholes and ensure global AI development remains tightly controlled.

AI is regarded as a transformative technology capable of improving healthcare, education, and food security, but it also poses risks, including potential use in cyberattacks, surveillance, and the creation of advanced weapons.

The incoming Trump administration will determine how to enforce these rules. Some experts express concern that inconsistent enforcement could weaken their effectiveness over the next decade.

China’s Commerce Ministry has strongly opposed the new restrictions, stating it will take measures to protect its rights and interests.

Despite concerns from the industry, US officials argue that the regulations are necessary to keep pace with the rapid progress of AI, which is anticipated to have a significant impact on the economy and national security in the coming years.