😵Biden's Final AI Chip Crackdown

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Biden introduces strict AI chip export restrictions in final week

Key Points 

• Biden’s new AI chip rules divide countries into three groups, with different restrictions based on international relations.

• Most countries now face a cap of 50,000 chips, aiming to prevent adversaries from bypassing restrictions.

☕News - With just a week left in office, President Joe Biden introduced a new set of rules for exporting U.S.-made AI chips. 

Announced on Monday, the Interim Final Rule on AI diffusion is designed to help allied nations benefit from AI while easing licensing hurdles for chip orders, according to a White House statement. But it also places stricter limits on chip sales to most countries worldwide.  

📜Here’s the breakdown -   

The guidelines split countries into three groups: 

• The first group includes close allies like Japan and South Korea, which won’t see any new restrictions. 

• The second group, featuring nations like China and Russia, already faces a ban on buying advanced AI chips—and these new rules add even tighter controls on access to closed AI models.  

• The third group, covering most of the world, faces a new cap: 50,000 graphics processing units per year. Countries like Mexico, Portugal, and Israel fall into this group. While there are ways to increase the quota, the rules aim to stop adversaries like China and Russia from using these nations as middlemen. However, this could also slow down AI adoption in these countries. 

🫠How the industry is reacting - Nvidia called the new rules “unprecedented and misguided,” warning they could “derail” innovation and economic growth globally. However, with a new administration taking over next week, the conversation around these restrictions could shift soon.  

Read the full story here.

OpenAI courts Trump with ambitious ‘AI in America’ proposal

Key Points 

• OpenAI released its economic blueprint for "AI in America," urging policymakers to boost US AI development to maintain global leadership. 

• The company calls for allowing Middle Eastern investments in US AI projects, warning that funds could flow to China instead.

• OpenAI advocates for light-touch regulation on AI technologies. 

🥸Context of the news - In December, Sam Altman, OpenAI’s CEO, donated $1 million to President-elect Donald Trump’s inaugural fund, aligning himself with other tech executives seeking to build bridges with the incoming administration. 

Now, Altman and his company have laid out their vision for the future of AI in the US, aiming to influence how the next presidential administration handles the rapidly evolving technology.

📘News - This week, OpenAI unveiled its economic blueprint for "AI in America," offering suggestions on how the US can boost AI development, manage its risks, and stay ahead of China. 

The document, written by Chris Lehane, OpenAI's global policy head, stresses the urgency of action. "America needs to act now to maximize AI’s possibilities while minimizing its harms," Lehane noted. 

🤨What's the most interesting point? One of the most interesting proposals is OpenAI’s push for US policymakers to allow investment in American AI projects from countries like Saudi Arabia and the UAE. While the Biden administration has been cautious about such investments, OpenAI argues that if these nations don’t invest in the U.S., their funds could end up boosting China instead. 

🧐What's more? OpenAI has also urged the government to adopt a more relaxed stance when it comes to creating regulations aimed at ensuring the safety and security of technologies developed by OpenAI and its US competitors.

Notably, Altman is set to meet with lawmakers, economists, and Trump administration officials on January 30 to discuss the future of AI development and showcase new OpenAI tech that he believes will highlight AI’s economic potential.

Read the full story here.