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Microsoft Urges Trump To Reverse Biden AI Chip Export Restriction
In an open letter posted Thursday, Microsoft is pushing for the Trump administration to relax export restrictions placed on AI chips by President Biden during his last days in office.
Brad Smith, president of Microsoft, said that the Biden AI Diffusion Rule limited the export of U.S.-manufactured chips used in AI technology to strategic U.S. allies, runs counter to the Trump administration's push to strengthen American exports in the world market.
"As drafted, the rule undermines two Trump administration priorities: strengthening U.S. AI leadership and reducing the nation's near trillion-dollar trade deficit," wrote Smith in a blog post. "Left unchanged, the Biden rule will give China a strategic advantage in spreading over time its own AI technology, echoing its rapid ascent in 5G telecommunications a decade ago."
Smith said the Biden rule puts unnecessary hardships on exporting to other nations, including U.S. allies like Switzerland, Poland and India. The rule also makes it difficult for Microsoft to establish new AI-focused datacenters in these parts of the world. The concern is that these nations may turn to alternative suppliers, potentially strengthening China's influence in the AI sector. The rule's critics warn that this could stifle American tech companies' ability to invest in and build global AI infrastructure, negatively impacting U.S. economic growth.
For its part, Microsoft is planning on investing $80 billion for global A.I. infrastructure just this year. But Smith said that future plans for growth for the company and the broader U.S. economy could be limited if the rule continues to be in place. "The potentially negative impact on American economic growth doesn’t stop there. As the tech sector invests billions of dollars to build datacenters around the world, we are developing global supply chains that combine international and American suppliers of more traditional manufactured goods."
If the U.S. wants to be competitive with China in the AI arms race, policies like the AI Diffusion Rule need to be overhauled, said Smith. He recommends simplifying the 41-page rule, extending exceptions for exporting to allies and curbing capped export numbers, while keeping the portions that strengthen security around AI usage.
"We need to recognize the obvious. America’s AI race with China begins at home. It’s founded on the ability of innovative American firms to bring manufactured goods and technology services to like-minded countries around the world. We’re prepared to invest. What we need now is an AI diffusion rule that gives us the ability to do so."