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US Tech Giants Urge Biden to Delay AI Chip Restrictions

Top US tech companies, including Amazon, Microsoft, and Meta, have called on President Joe Biden’s administration to hold off on implementing a last-minute rule that would restrict global access to Artificial Intelligence (AI) chips. The companies, represented by the Information Technology Industry Council (ITIC), warned that such restrictions could undermine the US’s leadership in AI technology.

The rule, which could be announced as early as Friday, is part of the Biden administration’s efforts to limit the use of advanced AI by adversaries, particularly China. The proposed regulations would impose broad restrictions on the sale of AI chips to foreign nations.

Although China is the primary target, the rule would also affect other countries, including Nigeria, which is actively advancing its AI initiatives. The White House and the Department of Commerce have yet to comment on the matter, as reported by Reuters.

Jason Oxman, CEO of the Information Technology Industry Council, criticized the administration’s rush to finalize the rule in the waning days of Biden’s presidency. In a letter to US Commerce Secretary Gina Raimondo, Oxman argued that hastily implementing such a significant and complex regulation could have serious unintended consequences.

“Rushing a consequential and complex rule to completion could have significant adverse consequences,” Oxman wrote in the January 7 letter, a copy of which was obtained by reporters.

While acknowledging the need to address national security concerns, Oxman highlighted the potential negative impact on the US’s standing in the global AI race. He urged the administration to take a more thoughtful approach, suggesting that the rule be introduced as a proposed rulemaking to allow for more extensive consultation and discussion.

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