Biden suggests new export restrictions on GPUs aimed at China.

The Biden administration has introduced a new regulation known as the "AI Dissemination Rule," which aims to limit the export of highly sought-after GPUs for artificial intelligence applications. Although no specific countries are mentioned, the measure is broadly interpreted as an attempt to prevent China from surpassing the United States in the field of AI development.

The regulation establishes three levels of licenses. The first level is unrestricted and includes both the domestic market and 18 strategic allies. Most countries are classified in a second level, which will have limitations on the amount of computing power they can import through the most advanced U.S. GPUs. The third level consists of countries such as China, Russia, Iran, and North Korea, where U.S. companies will effectively be prohibited from selling their most powerful GPUs.

Additionally, companies based in the United States will be restricted in disclosing many details about their AI software models to countries outside the first level, and they will need federal government consent before establishing large data centers in any nation in the second level.

Various organizations, including the Semiconductor Industry Association (SIA), have expressed their disapproval of this decision, arguing that the restrictions could lead many countries to seek closer collaboration with China. SIA has stated that "the new rule risks causing unforeseen and lasting damage to the U.S. economy and global competitiveness in semiconductors and AI, yielding strategic markets to our competitors." NVIDIA has also opposed the measure, with Ned Finkle, the company's Vice President of Government Affairs, stating that the Biden administration "seeks to undermine U.S. leadership with a regulatory maze of over 200 pages, drafted in secret and without proper legislative review."

The rule has a 120-day comment period, leaving its viability under a potential Trump administration in suspense.