US tightens its grip on AI chip flows

The outgoing Biden administration has imposed new restrictions on exporting US-developed AI chips, aiming to curb China’s military and industrial rise and blocking access to powerful AI chips and “closed” AI models. The decision, made just a week before Biden leaves office, is expected to heighten tensions with Beijing. US Secretary of Commerce Gina Raimondo stated the rules are designed to protect advanced AI technology and prevent it from reaching foreign adversaries.

The new global export framework creates three tiers for advanced AI chip exports. No new restrictions are placed on allies like Australia, Japan, South Korea, and Taiwan.



China and Russia, already blocked from buying advanced chips, will face additional restrictions on “closed” AI models. The third tier, which includes most countries, will see caps on computing power purchases, though they can apply for extra quotas under specific security conditions.

Closed AI models are proprietary systems with restricted access, preventing modification, redistribution, or transparency of their underlying algorithms and data. These models are typically more advanced and powerful, and they are often used for sensitive applications, such as military or high-stakes commercial uses.