Biden administration introduces new GPU export controls targeting China

The Biden administration has introduced the "AI diffusion rule" to limit GPU exports, primarily aimed at preventing China from advancing in AI technology. The rule establishes three licensing tiers, with the third tier effectively banning sales to China, Russia, Iran, and North Korea. Under the new rule, US companies cannot share certain AI software details with countries outside the first tier. They must also seek government approval before constructing large data centers in tier two nations, which face import caps on GPU power. The Semiconductor Industry Association and NVIDIA have criticized the rule, arguing it could harm the US economy and competitiveness in semiconductors and AI. The rule is open for public comment for 120 days, leaving its future uncertain.