The Biden administration has unveiled a new plan for exporting advanced computer chips used in AI development, aiming to balance national security with economic interests. This framework has raised concerns among chip industry leaders and EU officials due to its potential impact on 120 countries, including Mexico, Portugal, Israel, and Switzerland, while primarily targeting China. White House national security adviser Jake Sullivan emphasized the importance of the U. S. leading AI development globally. Commerce Secretary Gina Raimondo highlighted the need to protect advanced AI tech from adversaries while sharing benefits with allies. The proposal includes export restrictions even reaching data centers in the Middle East and Southeast Asia, to prevent Chinese firms from accessing certain AI technologies. However, critics like the Semiconductor Industry Association argue the policy, released quickly ahead of a presidential transition, could harm U. S.

competitiveness in AI. The framework is believed to affect the market for video game chips and international data center projects, impacting firms like China-based GDS Holdings. This proposal opens a 120-day comment period, potentially leaving implementation to the incoming administration. Roughly 20 key allies, including Australia, Canada, and several EU countries, would face no restrictions, although European officials argue that selling AI chips to EU members doesn’t pose security risks. The framework sets purchase limits at 50, 000 GPUs per non-allied country, with potential increases through government deals or by applying for special status. Despite pushback, large AI-driven cloud computing providers like Amazon, Google, and Microsoft are expected to continue expanding due to exemptions for trusted companies. Biden's approach leaves the decision to Trump’s incoming administration, signaling an ongoing focus on U. S. -China trade policy.