Biden is proposing new export controls for GPUs headed to China

The Biden administration has unveiled “,” which aims to limit the deployment of GPUs that are largely abandoned by AI applications. Although it does not name the country, it is seen as a way to prevent China from surpassing the US in AI development.

The Act provides for three levels of consent. The first category is unlimited and includes the domestic market and 18 allies. Most countries fall into the second category, which will have more power that they can send through high-end GPUs from the US. The third tier includes China, Russia, Iran and North Korea, and they effectively prevent US companies from selling their most powerful GPUs there.

US-based companies will also be barred from sharing information about their AI programs with countries that do not have the first phase, and may need to seek government approval before building large data centers in either country.

Many parties, including the Semiconductor Industry Association (SIA), released it criticizing the decision, I believe the sanctions will do more to force countries to work with China. “The new law risks unintended damage to the American economy and global competition in semiconductors and AI by ceding technology markets to competitors,” SIA wrote.

NVIDIA also objected, with Ned Finkle, the Vice President of the Government, saying that the Biden Administration “intends to disrupt the American leadership with a 200+ web site, written in secret and without proper legal review.”

The law has a 120-day comment period, so whether it will survive the Trump administration remains an open question.