Microsoft urges Trump to overhaul Biden's last AI chip export curbs

Microsoft urges Trump to overhaul Biden's last AI chip export curbs

Technology

Microsoft urges Trump to overhaul Biden's last AI chip export curbs

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(Reuters) - Microsoft has urged President Donald Trump's team to ease export restrictions imposed on artificial intelligence chips in the closing days of his previous administration, saying the measures should not extend to a group of US allies.

In a blog post published on Thursday, the tech giant said these rules placed limitations on allies, including India, Switzerland and Israel, and limited the ability of U.S. tech companies to build and expand AI data centers in these countries.

Tighter U.S. restrictions on the exports of advanced AI chips, such as those made by leader Nvidia, to Beijing, have hurt the ability of American chipmakers and Big Tech to service one of the largest markets for semiconductors, accelerating a global race for AI infrastructure dominance.

In the final days of the Joe Biden administration, the U.S. government said it would further restrict AI chip and technology exports, divvying up the world to keep advanced computing power in the U.S. while finding more ways to block China's access.

Such restrictions could conversely lead to China gaining a leg-up in the AI race, Microsoft said.

"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," the company said.

According to the Wall Street Journal, which first reported on Microsoft's proposals earlier on Thursday, Trump administration officials are weighing steps to strengthen the restrictions while simplifying the export-control rules.