Advertisement

Biden administration unveils export controls on AI models, chips

The so-called AI diffusion rule from Commerce’s Bureau of Industry and Security faced swift pushback from industry.
Listen to this article
0:00
Learn more. This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment.
Commerce Secreatry Gina Raimondo speaks on the first day of the Democratic National Convention at the United Center in Chicago on Aug. 19, 2024. (Photo by MANDEL NGAN/AFP via Getty Images)

A new rule from the Commerce Department will institute a series of export controls designed to secure “the responsible use and diffusion” of artificial intelligence, part of an overarching Biden administration strategy to connect AI to national security and foreign policy interests.

The regulatory framework unveiled Monday by Commerce’s Bureau of Industry and Security places controls on specific closed AI model weights as well as on advanced computing chips. The rule also establishes controls on new license exceptions and updates to Data Center Validated End User (VEU) authorization.

Commerce Secretary Gina Raimondo said in a statement that the policy would help construct a globally trusted tech ecosystem and assist the United States in protecting itself against national security threats associated with AI, while not compromising innovation.

“Managing these very real national security risks requires taking into account the evolution of AI technology, the capabilities of our adversaries, and the desire of our allies to share in the benefits of this technology,” Raimondo said. “We’ve done that with this rule, and it will help safeguard the most advanced AI technology and help ensure it stays out of the hands of our foreign adversaries, while we continue to broadly share the benefits with partner countries.”

Advertisement

The new controls are intended to safeguard rapidly developing AI models from malicious actors that seek to threaten U.S. national security and foreign policy, the press release announcing the rule said, pointing specifically to the development of chemical or biological weapons, offensive cyber operations, mass surveillance and human rights abuses.

Though Commerce is putting security at a premium with the framework, the Biden administration said the rules were written to ensure that “humanity can reap” the technology’s “critical benefits,” opening up access to the most advanced U.S. AI models and large clusters of advanced computing integrated circuits to “responsible foreign entities and destinations” that agree to follow specific safety and security mitigations. 

But early industry reaction to the rule appears largely skeptical. Jason Oxman, president and CEO of the Information Technology Industry Council — a leading trade group that represents a host of software and AI companies — said in a statement that the global export controls on AI-related advanced compute tools “threatens to fragment global supply chains and discourage the use of U.S. technology.”

“Rushing a consequential and complex rule to completion without robust stakeholder engagement pays little regard to its impact on U.S. competitiveness and global alliances — which the Biden Administration has worked hard to strengthen,” Oxman said. “We urge the incoming Trump-Vance Administration to withdraw the rule and engage with industry so that we can work together to craft effective policies to address these national security concerns.”   

Ned Finkle, vice president of government affairs at NVIDIA, the semiconductor and AI computing giant, said the rules were “cloaked in the guise of an ‘anti-China’ measure” but “would do nothing to enhance U.S. security.” 

Advertisement

“The new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware,” Finkle wrote. “Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead.”

The rule would require authorizations for the export of advanced computing chips but creates exceptions for certain supply chains and allies and partners. There are also changes to license applications, with those now reviewed “under a presumption of approval until the total quantity of controlled chips exported or reexported to that country exceeds a specified allocation.”

Additionally, model weights of the most advanced closed-weight AI models will be subject to controls, though there will be an exception made for open models. BIS, meanwhile, will be charged with enforcing security conditions meant to “safeguard the storage of the most advanced models” in the name of national security.

“AI has been rapidly progressing over the last decade and will only grow more powerful, resulting in the emergence of highly capable models with significant dual-use applications,” said Alan F. Estevez, undersecretary of Commerce for industry and security. “This rule will protect national security and advance U.S. foreign policy by ensuring the responsible diffusion of frontier AI technology across the world.”

The framework is set to be published in the Federal Register on Wednesday, kicking off a 120-day comment period. With President-elect Donald Trump set to take office next week, the framework could face changes in the months ahead.

Latest Podcasts