Biden administration proposes new export rules for AI chips facing industry backlash

The Biden administration has proposed new rules for exporting advanced AI chips, aiming to address national security while considering economic interests. The framework could limit access to chips for video games and restrict imports for 120 countries, including Mexico and Israel. Commerce Secretary Gina Raimondo emphasized the need to maintain U.S. leadership in AI technology. However, industry executives have raised concerns that the rules may hinder innovation and fragment global supply chains, potentially disadvantaging U.S. companies. Under the new framework, about 20 key allies will face no restrictions on chip access, while others will have import caps. The proposal includes a 120-day comment period, allowing the incoming Republican administration to influence the final rules.