US set to allow tech giants to control access to AI chips

LovabledanielsDecember 16, 202475 Views

New US chip sanctions have been imposed on foreign companies
The restrictions spell an effective ban for Chinese firms
This closes an export loophole currently exploited to skirt around US sanctions

The US government has announced a strict set of requirements which could effectively block Chinese access to AI chips.

According to Reuters, these requirements will ‘empower companies like Google and Microsoft to act as gatekeepers worldwide’, and includes reporting information to the US government, which would close the export loopholes which currently allow Chinese companies to bypass the restrictions.

A small number of US tech firms will be offered ‘gatekeeper status’, allowing them to offer AI capabilities within the cloud in foreign countries without a license, leaving foreign actors to fight for a very limited number of licenses per country in order to import powerful AMD and Nvidia chips.

A war of attrition

There will be exemptions for 19 allied states, the report confirms, which would mean unlimited access to AI chips and capabilities.

There has been a significant buzz around AI in recent months, but the real value (or concern, depending on your perspective), is the military applications. This is sparking national security concerns on both sides, with China banning key mineral exports to the US, and the US in turn imposing trade sanctions.

The Chinese government recently retaliated against continued US sanctions by labeling chips made in the country as ‘no longer safe’ for use for domestic organizations, and has previously banned the export of gallium, antimony, and germanium to the US.

The US and China have been trading blows this year as they both battle to control the semiconductor market, swapping sanctions and offering domestic incentives.

China’s mineral wealth is crucial to the development of the chips, but the country does not yet have the capabilities to develop the high-powered chips domestically, so the battle between the two nations is likely to continue for the foreseeable future.