US to Empower Tech Giants as Global Gatekeepers for AI Chip Access

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

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. 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.

Major cloud providers could get key role in AI chip access outside the US, sources say

The new rules, some of whose details are being reported for the first time, show officials are scrambling in the waning days of the Biden administration to streamline the process for approving AI chip exports while also preventing bad actors from accessing them. The US fears China could harness the power of AI to supercharge its military, unleash powerful cyber attacks or even train a bioweapon. In its latest jab at Beijing, the US will empower companies like Google and Microsoft to act as gatekeepers worldwide for highly sought-after access to AI chips, two people familiar with the draft plan said. Under the scheme, to be released as soon as this month, these companies would have to comply with strict requirements, including reporting key information to the US government and blocking Chinese access to AI chips. That would permit them to offer artificial intelligence capabilities within the cloud overseas without a license, the sources said. The new rules, some of whose details are being reported for the first time, show officials are scrambling in the waning days of the Biden administration to streamline the process for approving AI chip exports while also preventing bad actors from accessing them. The US fears China could harness the power of AI to supercharge its military, unleash powerful cyber attacks or even train a bioweapon. The Commerce Department declined to comment on the content and timing of the new regulations. Sources cautioned the administration's plans may change. Alphabet's Google and Microsoft did not immediately respond to requests for comment. The measure takes a page from a national security agreement Microsoft inked with the U.S. government in April allowing it to provide AI technology to Emirati firm G42, the people said. Under the new draft rules, other companies beyond those with gatekeeper status will compete for licenses to import a smaller number of high-end Nvidia and AMD AI chips in each country, one of the sources said. Nvidia, which makes the world's most powerful AI chips, said it is ready to work with the administration on the rules. AMD did not immediately respond to a request for comment. Exempted from the caps would be 19 allied countries like the Netherlands and Japan plus Taiwan, which would have unlimited access to the AI chips or the capability they provide, two of the sources said. Also outside the framework would be a list of nuclear embargoed countries, including Russia, China, Iran and Venezuela, which are already blocked from acquiring U.S. AI semiconductors and would remain so. The caps could upset some countries, however. Geoffrey Gertz, a former White House official now at the Center for a New American Security, said a global program of country caps "would likely raise significant concerns from U.S. partners and allies around the world, who are wary of the United States acting as a unilateral arbiter on who gets to access advanced chips critical for AI." The U.S. government is conducting a final review of an "Artificial Intelligence Diffusion" rule drafted by the Commerce Department, according to a government posting this week, indicating it may be closing in on publication. Three sources said the posting referred to the AI caps. The Information Technology Industry Council, an advocacy association whose members include AMD and Google, is concerned the Biden administration is rushing the complex rule out without industry input that could head off adverse consequences. "If reports are accurate, such changes would dramatically expand the scope of export controls and have significant global implications," Naomi Wilson, the council's senior vice president of Asia and global trade policy, said in a statement. The rules build on a program unveiled in September that gives permission to pre-approved data centers overseas to receive AI chips without a license, two sources said. To achieve that status, data centers must provide information about customers, business activities, access restrictions and cybersecurity.

Exclusive-Major cloud providers could get key role in AI chip access outside the US - sources

WASHINGTON (Reuters) - In its latest jab at Beijing, the U.S. will empower companies like Google and Microsoft to act as gatekeepers worldwide for highly sought-after access to AI chips, two people familiar with the draft plan said. Under the regime, to be released as soon as this month, these companies would have to comply with strict requirements, from reporting key information to the U.S. government to blocking Chinese access to AI chips. That would permit them to offer AI capabilities within the cloud overseas without a license, the sources said. The new rules, some of whose details are being reported for the first time, show officials are scrambling in the waning days of the Biden administration to streamline the process for approving AI chip exports while also preventing bad actors from accessing them. The U.S. fears China could harness the power of AI to supercharge its military, unleash powerful cyber attacks or even train a bioweapon. The Commerce Department declined to comment on the content and timing of the new regulations. Sources cautioned the administration's plans may change. Alphabet's Google and Microsoft did not immediately respond to requests for comment. The measure takes a page from a national security agreement Microsoft inked with the U.S. government in April allowing it to provide AI technology to Emirati firm G42, the people said, whose historic ties to China fueled worry in Washington. Under the new draft rules, other companies beyond those with gatekeeper status will compete for licenses to import a smaller number of high-end Nvidia and AMD artificial intelligence chips in each country, one of the sources said. Nvidia, which makes the world's most powerful AI chips, said it is ready to work with the administration on the rules. AMD did not immediately respond to a request for comment. Exempted from the regime's caps would be 19 allied countries like the Netherlands and Japan plus Taiwan, which would have unlimited access to the AI chips or the capability they provide, two of the sources said. Also outside the framework would be a list of nuclear embargoed countries, including Russia, China, Iran and Venezuela, which are already blocked from acquiring U.S. AI semiconductors and would remain so. The U.S. government is conducting a final review of an "Artificial Intelligence Diffusion" rule drafted by the Commerce Department, according to a government posting this week, indicating it may be closing in on publication. Three sources said the posting referred to the AI caps. The Information Technology Industry Council, an advocacy association whose members include AMD and Google, is concerned the Biden administration is rushing the complex rule out without industry input that could head off adverse consequences. "If reports are accurate, such changes would dramatically expand the scope of export controls and have significant global implications," Naomi Wilson, the council's senior vice president of Asia and global trade policy, said in a statement. The rules build on a program unveiled in September that gives permission to pre-approved data centers overseas to receive AI chips without a license, two sources said. To achieve that status, data centers must provide information about customers, business activities, access restrictions and cybersecurity. (Reporting by Alexandra Alper and Karen Freifeld; additional reporting by David Shepardson; editing by Chris Sanders and Chizu Nomiyama)

Exclusive: Major cloud providers could get key role in AI chip access outside the US - sources

WASHINGTON, Dec 13 (Reuters) - In its latest jab at Beijing, the U.S. will empower companies like Google and Microsoft to act as gatekeepers worldwide for highly sought-after access to AI chips, two people familiar with the draft plan said. Under the regime, to be released as soon as this month, these companies would have to comply with strict requirements, from reporting key information to the U.S. government to blocking Chinese access to AI chips. That would permit them to offer AI capabilities within the cloud overseas without a license, the sources said. The new rules, some of whose details are being reported for the first time, show officials are scrambling in the waning days of the Biden administration to streamline the process for approving AI chip exports while also preventing bad actors from accessing them. The U.S. fears China could harness the power of AI to supercharge its military, unleash powerful cyber attacks or even train a bioweapon. The Commerce Department declined to comment on the content and timing of the new regulations. Sources cautioned the administration's plans may change. Alphabet's (GOOGL.O), opens new tab Google and Microsoft(MSFT.O), opens new tab did not immediately respond to requests for comment. The measure takes a page from a national security agreement Microsoft inked with the U.S. government in April allowing it to provide AI technology to Emirati firm G42, the people said, whose historic ties to China fueled worry in Washington. Under the new draft rules, other companies beyond those with gatekeeper status will compete for licenses to import a smaller number of high-end Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab artificial intelligence chips in each country, one of the sources said. Nvidia, which makes the world's most powerful AI chips, said it is ready to work with the administration on the rules. AMD did not immediately respond to a request for comment. Exempted from the regime's caps would be 19 allied countries like the Netherlands and Japan plus Taiwan, which would have unlimited access to the AI chips or the capability they provide, two of the sources said. Also outside the framework would be a list of nuclear embargoed countries, including Russia, China, Iran and Venezuela, which are already blocked from acquiring U.S. AI semiconductors and would remain so. The U.S. government is conducting a final review of an "Artificial Intelligence Diffusion" rule drafted by the Commerce Department, according to a government posting this week, indicating it may be closing in on publication. Three sources said the posting referred to the AI caps. The Information Technology Industry Council, an advocacy association whose members include AMD and Google, is concerned the Biden administration is rushing the complex rule out without industry input that could head off adverse consequences. "If reports are accurate, such changes would dramatically expand the scope of export controls and have significant global implications," Naomi Wilson, the council's senior vice president of Asia and global trade policy, said in a statement. The rules build on a program unveiled in September that gives permission to pre-approved data centers overseas to receive AI chips without a license, two sources said. To achieve that status, data centers must provide information about customers, business activities, access restrictions and cybersecurity. Reporting by Alexandra Alper and Karen Freifeld; additional reporting by David Shepardson; editing by Chris Sanders and Chizu Nomiyama Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Cybersecurity

US to set AI chip export rules, tech giants to be gatekeepers - Reuters By Investing.com

The United States is preparing to introduce new regulations that would designate technology companies such as Alphabet (NASDAQ:GOOGL)'s Google and Microsoft (NASDAQ:MSFT) as global gatekeepers for the distribution of artificial intelligence (AI) chips, according to a report from Reuters, citing individuals with knowledge of the draft plan. These companies would be allowed to offer AI capabilities within their cloud services overseas without needing a license, provided they adhere to stringent reporting requirements and prevent Chinese entities from accessing these AI chips. The forthcoming rules, details of which are being disclosed for the first time, are part of an effort by the Biden administration to balance the facilitation of AI chip exports with the prevention of their acquisition by entities that could pose a threat. There is a concern within the U.S. government that China could exploit AI technology to enhance its military capabilities, conduct advanced cyber attacks, or develop bioweapons. While the Commerce Department has not commented on the specifics or the release schedule of the new regulations, sources have indicated that the administration's plans could still be subject to change. Neither Google nor Microsoft has responded to inquiries regarding the measure. This initiative follows a pattern set by a national security agreement signed in April between Microsoft and the U.S. government, allowing Microsoft to supply AI technology to the Emirati company G42, which has historical connections to China. Under the draft rules, companies without gatekeeper status would still be able to apply for licenses to import a limited quantity of high-end AI chips from manufacturers such as Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) in each country. Nvidia has expressed its willingness to collaborate with the U.S. government on the regulations, while AMD has not provided a response. The proposed regime would exempt 19 allied countries, including the Netherlands, Japan, and Taiwan, allowing them unrestricted access to AI chips or the capabilities they enable. Conversely, countries under nuclear embargo, such as Russia, China, Iran, and Venezuela, would continue to be barred from obtaining U.S. AI semiconductors. A final review of an "Artificial Intelligence Diffusion" rule is underway, as indicated by a government posting earlier this week, suggesting that the publication of the regulations could be imminent. This rule is believed to pertain to the AI chip export caps. The Information Technology Industry Council, representing companies including AMD and Google, has voiced concerns that the Biden administration might be expediting the implementation of this complex rule without sufficient input from the industry, which could prevent unintended negative impacts. Naomi Wilson, the council's senior vice president of Asia and global trade policy, stated that such changes could significantly alter the landscape of export controls with wide-ranging global effects. These new rules expand upon a program introduced in September, which allows pre-approved international data centers to receive AI chips without a license. To qualify for this status, data centers are required to disclose extensive information about their operations, including customer details, business activities, access controls, and cybersecurity measures.

U.S. Tightens AI Chip Sales Rules to Curb China's Access, WSJ reports By Investing.com

Investing.com -- The United States is advancing regulations to tighten the sale of advanced artificial intelligence (AI) chips in some parts of the world, particularly to impede China's ability to procure them, the Wall Street Journal reported on Friday. These rules are specifically designed to restrict China's access to high-end AI technology, but they could potentially create conflicts between the U.S. and other nations that may not prefer having their chip purchases closely overseen by Washington, the Journal reported. The Biden administration has been implementing measures since October 2022 to limit the flow of state-of-the-art chips and related technology to China, with updates to these measures occurring this month. The impending restrictions are expected to be enacted weeks before Donald Trump assumes the presidency. They aim to establish shipment caps on AI chips to certain regions, especially for use in large data centers, according to the report, citing people familiar with the matter. Under the plan, a two-tier system is proposed where close U.S. allies would face no restrictions, while other nations would encounter limitations on the number of AI chips permissible for their data centers. In addition to these measures, U.S. officials are exploring further restrictions, such as export controls on the weights that power sophisticated AI models and additional China-specific limitations on chip production. Notices regarding some of the restrictions have been issued to major chip manufacturers, including Taiwan Semiconductor Manufacturing and Samsung (LON:0593xq) Electronics (KS:005930), the Journal reported.