The Biden administration has unveiled its most sweeping restrictions yet on the export of advanced computer chips used in artificial intelligence, a move aimed at curbing access to the technology by rivals like China and Russia. Announced Monday, just days before President-elect Donald Trump takes office, the measures represent a significant escalation in Washington's efforts to maintain its technological edge while addressing national security concerns.
The new framework, developed by the Department of Commerce, establishes a three-tiered system for exporting AI chips, imposing the heaviest restrictions on nations deemed adversaries, including China and Russia. These countries are now barred from purchasing the most advanced "closed" AI models, whose underlying architectures are not publicly disclosed. A broader cap has also been placed on chip imports by third-tier countries to prevent backdoor access to restricted technology.
Speaking to reporters, Commerce Secretary Gina Raimondo emphasized the urgency of the measures. "As AI becomes more powerful, the risks to our national security become even more intense," Raimondo said. "This framework is designed to safeguard the most advanced AI technology while enabling its diffusion among our trusted allies and partners."
The announcement comes at a time of heightened demand for AI chips, driven by breakthroughs in generative AI and advanced data processing. Companies like Nvidia, AMD, and Intel, which dominate the sector, have expressed sharp criticism of the policy, arguing it risks undermining U.S. competitiveness. Nvidia's Vice President of Government Affairs, Ned Finkle, accused the administration of overreach, stating, "The Biden Administration now seeks to restrict access to mainstream computing applications with its unprecedented and misguided 'AI Diffusion' rule, which threatens to derail innovation and economic growth worldwide."
Oracle Executive Vice President Ken Glueck echoed those concerns, labeling the framework as "extreme regulatory overreach" that "enshrines the law of intended consequences and will cost the US critical technology leadership."
The Semiconductor Industry Association also weighed in, describing the restrictions as "unprecedented in scope and complexity" and cautioning that they could fragment global supply chains.
Despite the backlash, Biden officials defended the timing of the announcement, citing the need to act before the United States' six- to 18-month technological advantage over China is eroded. A senior administration official stated, "We believe we're in a critical window right now, particularly vis-a-vis China. Every minute counts from our perspective."
Under the framework, allied countries such as Japan, South Korea, and the United Kingdom face no new restrictions, while others, including Mexico and Israel, could see limitations on the chips they can purchase. Caps on AI computational capacity have also been introduced to prevent excessive stockpiling by third-party nations.
The measures allow for certain exemptions, such as chip allocations for universities and medical institutions. Countries meeting renewable energy and technological security benchmarks set by the United States may apply for increased quotas.
The policy has geopolitical implications as well. It is the latest in a series of restrictions on semiconductor technology aimed at Beijing, following earlier curbs on semiconductor-making equipment and blacklisting Chinese firms. These efforts align with Chinese President Xi Jinping's push for self-reliance in technology, a key pillar of China's economic strategy.
Incoming President Donald Trump's administration will ultimately determine the final contours of the policy during a 120-day public comment period. Trump, who takes office next week, will face the challenge of balancing national security concerns with the economic interests of American tech companies and their global partners.
Raimondo expressed optimism about the potential for adjustments under Trump's leadership. "We hope that the next administration takes full advantage of those 120 days to listen to experts, industry, industry players, partner countries," she said.
