Mon Jan 13 14:46:00 UTC 2025: **Biden Administration Imposes Strict New Limits on Export of Advanced AI Chips**

WASHINGTON D.C. – In a final-hour move before leaving office, the Biden administration announced sweeping new restrictions on the export of advanced artificial intelligence (AI) chips to most countries. The regulations, effective 120 days after publication, aim to maintain U.S. dominance in AI technology by limiting access for nations deemed a risk, while granting favored allies unrestricted access.

The new rules significantly curb the export of high-performance Graphics Processing Units (GPUs), crucial for training advanced AI models. These restrictions, measured in Total Processing Performance (TPP), will limit most countries to a combined 790 million TPP through 2027 – approximately 50,000 high-end Nvidia H100 GPUs. This cap aims to prevent the proliferation of cutting-edge AI capabilities to potential adversaries.

China, Russia, Iran, and North Korea remain subject to existing restrictions and will face continued limitations under the new rules. However, close U.S. allies including the UK, Canada, Germany, Japan, South Korea, and Taiwan, along with fourteen other nations, will have unlimited access.

Commerce Secretary Gina Raimondo stressed the importance of maintaining U.S. leadership in AI development and chip design. The restrictions are designed to prevent the technology from falling into the wrong hands, hindering potential adversaries’ AI development capabilities.

While the incoming Trump administration will have time to review the regulations, both administrations share a similar concern regarding the competitive threat posed by nations like China in the AI sector. The new rules include exemptions for small orders (approximately 1,700 H100 equivalent GPUs), and for companies with special authorizations, such as Amazon Web Services and Microsoft Azure, and for gaming GPUs. The impact on research institutions and universities is expected to be minimal due to these provisions. The administration emphasized that most chip orders, particularly those from academic and research institutions, fall well below the imposed limits.

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