According to reports, the U.S. government plans to completely abolish the export regulations for artificial intelligence (AI) chips, discarding the policies that faced strong opposition from U.S. allies and companies like NVIDIA and Oracle during the Biden administration.
According to Bloomberg on the 14th, the U.S. Department of Commerce stated in a release on the 13th that the AI export measures enacted during the Biden administration would stifle U.S. innovation and impose heavy regulatory burdens on companies. These regulations &#34;would downgrade dozens of countries to a secondary status, thereby harming U.S. diplomatic relations with these countries.&#34; The U.S. Department of Commerce announced that it would halt the AI-related export regulations originally set to take effect on May 15, while also announcing further measures to strengthen export controls on global semiconductors. According to the statement, the U.S. Department of Commerce will issue a formal notice to revoke the regulations and release alternative plans.
Previous reports indicated that former President Biden implemented chip export control measures a week before leaving office, instituting a &#34;three-tier licensing system&#34; for high-end AI chip exports to limit the quantity of AI chips that countries could obtain from the U.S. Under the regulations, 18 countries, including G7 member states, would not face any restrictions on importing advanced AI chips from the U.S., while the import quantities for 120 countries, including Singapore and Saudi Arabia, would be limited, and countries like China and Russia would essentially be unable to obtain advanced AI chips from the U.S. Bloomberg reported in another article that the measures aimed to prevent China from acquiring AI chips through third countries and to bring more countries under U.S. regulation through these measures.
The statement from the U.S. Department of Commerce on the 13th indicated that using Huawei Ascend chips anywhere in the world would violate U.S. export controls, and it also plans to issue warnings to the public regarding the potential consequences of allowing U.S. AI chips to be used for developing Chinese AI models. The U.S. Department of Commerce stated that regardless of the outcome, it would &#34;collaborate with other trusted countries to adopt a bold and inclusive strategy for U.S. AI technology while preventing that technology from falling into the hands of our adversaries.&#34;
Insiders revealed that the U.S. Department of Commerce is drafting new proposals that may shift towards negotiating separate agreements with various countries. Reports indicate that the terms of bilateral chip agreements that the U.S. government may negotiate with countries in the coming months will be crucial, but reaching such agreements is a daunting task and could result in companies needing to comply with dozens of different policy regulations.
Many countries, including Saudi Arabia and the UAE, have expressed strong opposition to the limitations on their ability to obtain AI chips. NVIDIA has consistently criticized the U.S. government's chip export control measures and has advocated for their complete abolition, arguing that restrictions on third countries will only push them towards China. NVIDIA CEO Jensen Huang stated last week that U.S. companies should be allowed to export to China, and he expects the Chinese AI chip market to reach $50 billion in the coming years.
In January of this year, a spokesperson for China's Ministry of Commerce commented on the AI chip export control measures issued by the Biden administration, stating that the measures severely hinder normal economic and trade exchanges among countries, seriously undermine market rules and international economic and trade order, significantly impact global technological innovation, and severely harm the interests of companies worldwide, including U.S. companies. China firmly opposes this
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NVDA

The U.S. government plans to abolish the AI chip export regulations established during the Biden administration, stating that they stifle innovation and increase regulatory burdens. The Department of Commerce will halt the export regulations originally set to take effect on May 15 and strengthen global semiconductor export controls. The new regulations will affect the acquisition of AI chips by countries such as China and Russia, while consulting with other countries on bilateral chip agreements

- The U.S. government plans to abolish AI chip export regulations that faced opposition from allies and companies like Nvidia and Oracle.  
- The Department of Commerce stated that these regulations hinder innovation and damage diplomatic relations with numerous countries.  
- A new proposal is being drafted to establish bilateral agreements with various nations, although achieving consensus on these terms may prove challenging.

Wallstreetcn

NVIDIA

Strict controls on chip exports to China, more measures to strengthen regulation, new US rules "same soup but different medicine"