The newest twist in the U.S.-China tech clash could transform global AI dynamics.
At a Glance
- The U.S. Commerce Department expanded an export rule requiring foreign data centers to apply for approval before importing American advanced computing and AI chips.
- The expansion is due to national security threats, primarily from the Chinese regime.
- The U.S. intelligence community has identified the Chinese Communist Party’s (CCP) intent to use AI for mass surveillance and intelligent weapons platforms.
- The Bureau of Industry and Security may require assurances from the host country’s government for on-site reviews and security commitments.
- S. officials have slowed the issuing of licenses to chipmakers like Nvidia Corp. and Advanced Micro Devices Inc. for large-scale AI accelerator shipments to the Middle East.
U.S. Commerce Department Tightens Export Rules on AI Chips to Foreign Data Centers
In a sharp response to national security threats, primarily emanating from the Chinese regime, the U.S. Commerce Department has revised and expanded export regulations.
These now mandate that foreign data centers secure approval before importing American AI and computing chips. Aimed at addressing concerns over the Chinese Communist Party’s (CCP) potential use of the technology for mass surveillance or weaponization, this new rule is equally stringent and meticulous, requiring comprehensive details about clientele and associations with blacklisted entities.
The Bureau of Industry and Security (BIS) also plays a crucial role, demanding assurances that these data centers adhere to rigorous security protocols. Additional government guarantees may be requested to ensure stringent compliance with the new rulings. This withdrawal of easy access underscores Washington’s growing vigilance over maintaining technological superiority and preventing adversaries from exploiting America’s technological advancements.
Global Powers and AI Technology
AI is recognized as a dual-use technology, holding both beneficial and potentially harmful applications. The U.S. intelligence community has already observed CCP’s intentions to weaponize AI for mass surveillance and advanced warfare platforms. It’s a critical national security issue that can no longer be ignored. The rigorous steps taken reflect broader efforts by U.S. lawmakers and officials to ensure adversaries do not circumvent sanctions and exploitation of sensitive technology.
“AI is the quintessential dual-use technology; it is in the interest of U.S. national security to work with industry and partner governments to develop a secure global technology ecosystem,” said Thea D. Rozman Kendler, assistant secretary of Commerce for Export Administration, in a press release.
Simultaneously, the spotlight falls on the Middle East, where aggressive import plans by countries such as the United Arab Emirates and Saudi Arabia have led to a slowdown in license issuances for large-scale AI chip shipments by companies like Nvidia Corp and AMD. Officials are conducting meticulous national security reviews for any high-volume sales of AI chips to this region.
U.S. updates export curbs on AI chips and tools to China
The new rules, which run 166 pages in length, go into effect on Thursday. They clarify, for example, that restrictions on chip shipments to China also apply to laptops containing those chips.https://t.co/ws3yRcdmgz— Paul Triolo (@pstAsiatech) April 2, 2024
Partnerships and Geopolitics
National security reviews focus on “high-volume sales,” indicative of strategic volumes that may fundamentally reshape AI capabilities within these nations, perpetuating concerns over “massive quantities” of chips flooding regions close to the Chinese sphere of influence. This level of scrutiny incurs delays as officials conduct these reviews, and the duration of these probes remains ambiguous.
“US officials have slowed the issuing of licenses to chipmakers such as Nvidia Corp. and Advanced Micro Devices Inc. for large-scale AI accelerator shipments to the Middle East, according to people familiar with the matter, while officials conduct a national security review of AI development in the region,” Bloomberg reported.
Expanding its geopolitical scope, the Bureau of Industry and Security recently updated controls on AI and advanced computing exports on October 17, 2023. The new rules outline criteria based on total performance, performance density, and data center usage, spanning a broadened geographic scope that includes 44 countries. These measures spotlight countries with AI applications aligning closely with Chinese interests, cementing the importance of multilateral export control adherence across allied nations cooperating with the U.S.
