AI Diffusion Rule Published

Posted 1/13/25

The Biden Administration released its proposed  "AI Diffusion Rule" Monday morning, aiming to control exports of chips used for artificial intelligence.  Quotas will restrict the number of chips to be exported to about 120 countries, while a short list of G-7 and other allied countries are exempt from restrictions.    Sales to China, Iran, Russia & North Korea are blocked.

The limits focus on Advanced Graphics Processing Units (GPUs) used to train AI models.   Cloud services providers like AWS and Microsoft will enjoy some waivers from the rules, in a material concession to the data center industry.  Cloud providers will have geographic limits, ensuring no more than half their computing power resides offshore.

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