Key Points
- ITI opposes a rule limiting global access to U.S. AI chips. The restrictions aim to prevent China from advancing its military AI.
- Critics argue the rule could harm U.S. AI leadership and competitiveness. ITI seeks a proposed rulemaking process to ensure broader input.
- Oracle’s executive calls the regulation overly broad and destructive.
- Neither the Commerce Department nor the White House has responded.
A prominent technology industry group has urged the Biden administration to reconsider implementing a sweeping rule that could severely limit global access to advanced AI chips. The Information Technology Industry Council (ITI), representing major tech firms like Amazon, Microsoft, and Meta, expressed concerns that the rule, expected to be announced as early as Friday, would undermine the United States’ leadership in artificial intelligence while providing an advantage to international competitors.
The proposed restrictions, spearheaded by the Commerce Department, aim to curb the export of AI chips to prevent their misuse, particularly to inhibit China’s military advancements. However, ITI CEO Jason Oxman criticized the timing and scope of the rule in a letter to Commerce Secretary Gina Raimondo. He argued that rushing such a significant policy in the final days of President Joe Biden’s administration could lead to unforeseen and damaging repercussions. Donald Trump is set to be inaugurated on January 20, making the rule’s timing even more contentious.
Oxman acknowledged the administration’s commitment to national security but cautioned that the proposed restrictions could inadvertently harm U.S. companies by imposing arbitrary constraints on their ability to sell computing systems abroad. He noted that the potential consequences include ceding a dominant position in the global AI market to other nations.
The ITI has called for the rule to be introduced as a proposed rulemaking process, allowing for comprehensive input from stakeholders due to the significant economic and geopolitical implications. The Semiconductor Industry Association and Oracle have also voiced their opposition. Ken Glueck, Oracle’s executive vice president, described the rule as overly broad, claiming it would impose unprecedented regulations on the global commercial cloud industry.
Neither the Commerce Department nor the White House has commented on industry leaders’ concerns. Critics warn that the draft regulation, titled the “Export Control Framework for Artificial Intelligence Diffusion,” could become one of the most disruptive policies ever introduced to the U.S. technology sector.