US Proposes Global Policy to Limit Distribution of Powerful GPUs to Promote US Dominance in AI Chip Industry

White House Announces Plan to Enhance National Security and Economic Strength in the Age of Artificial Intelligence

The White House has announced a plan to propose a global policy to limit the distribution of powerful, U.S.-made GPUs, with the aim of promoting U.S. dominance in the AI chip industry. The move is intended to enhance U.S. national security and economic strength in the age of artificial intelligence.

NVIDIA and Oracle Oppose the Move

NVIDIA and Oracle, two major players in the tech industry, have strongly opposed the move. NVIDIA Vice President of Government Affairs, Ned Finkle, expressed his disagreement with the new rules, stating that distributing powerful AI chips is a matter of national security and that restricting AI purchasing in some countries will not benefit the U.S.

Oracle’s Executive Vice President, Ken Glueck, also expressed his opposition to the new White House policy, calling it “highly complex and wildly overbroad” and stating that it will lead to confusion and uncertainty in the global market.

Proposed Rule Sorts Countries into Allied, Restricted, or Limited Categories

The proposed rule, known as the Interim Final Rule on Artificial Intelligence Diffusion, proposes restrictions on U.S. chip distribution to secure U.S. market share against competing technologies in China. The rule aims to mitigate national security risks exacerbated by generative AI, including cyberattacks.

The rule has six main parts:

18 U.S. allies will have unlimited access to chip sales.
Chip orders with collective computation power up to roughly 1,700 advanced GPUs are exempt, the White House said. Therefore, most universities and medical and research institutions can place chip orders without roadblocks.
Trusted partners known as “Universal Verified End Users” have U.S. permission to place a small percentage of their global AI computational capacity globally.
Countries on neither the U.S. “country of concern” nor close ally list that meet certain security requirements can be listed as “National Verified End Users.” This designation allows them to purchase computational power equivalent to up to 320,000 advanced GPUs from the U.S. for use within neutral countries over the next two years. (The “countries of concern” are China and its Special Administrative Regions, Hong Kong and Macau.)
Foreign governments, health care providers, and businesses outside of the U.S. or its close allies not designated National Verified End Users can purchase up to the equivalent of 50,000 advanced GPUs from the U.S. per country.
Governments that sign arrangements with the U.S. to specify export control, clean energy, and technology security efforts can double their allotted number of chips.

China will be restricted from advanced U.S. technology in general and AI foundation model weights. Russia also remains blocked from purchasing advanced chips from the U.S.

Which Countries Have Unlimited Access to U.S. AI Chips?

The 18 allied countries with unlimited access to U.S. AI chips under the policy are:

Australia.
Belgium.
Canada.
Denmark.
Finland.
France.
Germany.
Ireland.
Italy.
Japan.
Netherlands.
New Zealand.
Norway.
Republic of Korea (South Korea).
Spain.
Sweden.
Taiwan.
United Kingdom.

Conclusion

The proposed rule aims to promote U.S. dominance in the AI chip industry by limiting the distribution of powerful GPUs to certain countries. The move has sparked opposition from major tech players like NVIDIA and Oracle, who argue that it will lead to confusion and uncertainty in the global market. The proposed rule has six main parts, which sort countries into allied, restricted, or limited categories. The rule aims to mitigate national security risks exacerbated by generative AI, including cyberattacks.

FAQs

What is the purpose of the proposed rule?

The proposed rule aims to promote U.S. dominance in the AI chip industry by limiting the distribution of powerful GPUs to certain countries.

Who opposes the move?

NVIDIA and Oracle, two major players in the tech industry, have strongly opposed the move.

What are the six main parts of the proposed rule?

The six main parts of the proposed rule are:

18 U.S. allies will have unlimited access to chip sales.
Chip orders with collective computation power up to roughly 1,700 advanced GPUs are exempt.
Trusted partners known as “Universal Verified End Users” have U.S. permission to place a small percentage of their global AI computational capacity globally.
Countries on neither the U.S. “country of concern” nor close ally list that meet certain security requirements can be listed as “National Verified End Users.”
Foreign governments, health care providers, and businesses outside of the U.S. or its close allies not designated National Verified End Users can purchase up to the equivalent of 50,000 advanced GPUs from the U.S. per country.
Governments that sign arrangements with the U.S. to specify export control, clean energy, and technology security efforts can double their allotted number of chips.

What countries are restricted from advanced U.S. technology?

China will be restricted from advanced U.S. technology in general and AI foundation model weights. Russia also remains blocked from purchasing advanced chips from the U.S.