Biden administration announces new curbs on AI chip exports

The U.S. has imposed new restrictions on AI chip exports, aiming to block advanced chips from reaching China, which has strongly opposed the decision.

Shin Ha-young has the details.

With just a week left in office, the Biden administration on Monday announced new export restrictions on artificial intelligence chips.

The new rule exempts 18 allies, including South Korea, Japan, and the UK, while introducing additional measures to block China's access to such tech.

A total of 22 so-called tier three countries, including China, Russia, and Cuba, are already barred from purchasing advanced chips and will be newly subject to restrictions on the sale of closed-weight AI models.

North Korea is also banned.

Another key change is that entities in countries that are considered neither allies nor adversaries will now face new caps on the amount of computing power they can purchase.

Non-verified end-user entities located outside of close allies can still purchase large amounts of computational power, up to the equivalent of 50-thousand advanced graphics processing units, which are used to power data centers needed to train AI models.

Those meeting security requirements and based in countries that are not "of concern" can apply for National Verified End-User status, allowing them to purchase up to 320 thousand advanced GPUs over the next two years.

The new regulations are seen as ways to block China from building AI capabilities in third countries, like in Southeast Asia and the Middle East, or from importing AI chips with U.S. technology from those countries.

Regarding the announcement, China's Ministry of Commerce criticized the move, saying it creates obstacles for third parties engaging in normal trade with China.

U.S. AI chip giant Nvidia saw its stock drop on Monday due to fears of reduced export volumes.

Nvidia opposed the restriction, saying it threatens to derail innovation and global economic growth and would undermine America's leadership.

Now, all eyes are on President-elect Donald Trump.

The Biden administration believes new U.S. limits on global sales of AI chips will likely continue under Trump, citing bipartisan national security concerns surrounding China's pursuit of advanced technology.

However, chip companies are pushing to roll back Biden's regulations and urging Trump to create new policies.

Shin Ha-young, Arirang News.