NEW AI WORLD ORDER: The Biden administration’s Commerce Department this morning is rolling out what could be its final major action to keep the world's most advanced AI technology out of the hands of foreign adversaries like China. The interim final rule would overhaul the U.S. export control regime by implementing a three tiered system of restrictions for American allies and adversaries alike, including caps on the sale of chips commonly used in AI technology to most countries. Under the rule, a small group of approved nations will not face new curbs on imports of advanced AI chips or certain closed AI model weights, which process data using proprietary methods. But the vast majority of countries will see new curbs on computing technology originating from the U.S. that can be imported. Another group of mostly U.S. adversaries are effectively restricted from accessing the most advanced chips. Some context: The rule was the subject of intense wrangling between global tech giants and Washington's China hawks which spilled out into the public spotlight in the days and weeks leading up to the announcement. The guidelines come days before President Joe Biden leaves office, teeing up Donald Trump’s administration to either pursue or abandon the measure. “In its last days in office, the Biden Administration seeks to undermine America’s leadership with a 200+ page regulatory morass, drafted in secret and without proper legislative review,” Ned Finkle, Vice President of Government Affairs, of U.S. chip-giant NVIDIA, said in a statement. “This sweeping overreach would impose bureaucratic control over how America’s leading semiconductors, computers, systems, and even software are designed and marketed globally.” That scrutiny is shared by some lawmakers. Senate Commerce Chair Ted Cruz (R-Texas) said the “misguided approach” threatens to cripple innovation in a statement: “Worse, the Biden [administration] is exploiting an emergency carveout to bypass standard transparency and accountability procedures to try and jam President Trump and his team.” On the other side are China hawks: Reps. John Moolenaar (R-Mich.) and Raja Krishnamoorthi (D-Ill.), chair and ranking member of the House Select Committee on the Chinese Communist Party praised the rule and said they “strongly believe the United States needs a global answer to the [People's Republic of China]’s global circumvention efforts,” they wrote in a letter to Raimondo in January. Americans for Responsible Innovation, an advocacy group focused on AI, noted the jockeying in a statement celebrating the effort to close loopholes China uses to access U.S. technology. “Big Tech is going to whine and moan about the new framework, but at the end of the day, stopping the rapid advancement of AI technology for U.S. adversaries is a national security imperative. This is so much bigger than a Silicon Valley issue,” said ARI President Brad Carson. Your host has more here (for Pros!)
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