US set to allow tech giants to control access to AI chips

Date:
Mon, 16 Dec 2024 15:21:31 +0000

Description:
Access to AI chips outside the US may be heavily influenced by companies like
Google and Microsoft

FULL STORY

The US government has announced a strict set of requirements which could
effectively block Chinese access to AI chips. 

According to Reuters , these requirements will empower companies like Google
and Microsoft to act as gatekeepers worldwide, and includes reporting
information to the US government, which would close the export loopholes 
which currently allow Chinese companies to bypass the restrictions. 

A small number of US tech firms will be offered gatekeeper status, allowing
them to offer AI capabilities within the cloud in foreign countries without a
license, leaving foreign actors to fight for a very limited number of 
licenses per country in order to import powerful AMD and Nvidia chips.

A war of attrition

There will be exemptions for 19 allied states, the report confirms, which
would mean unlimited access to AI chips and capabilities. 

There has been a significant buzz around AI in recent months, but the real
value (or concern, depending on your perspective), is the military
applications. This is sparking national security concerns on both sides, with
China banning key mineral exports to the US, and the US in turn imposing 
trade sanctions. 

The Chinese government recently retaliated against continued US sanctions by
labeling chips made in the country as no longer safe for use for domestic
organizations, and has previously banned the export of gallium, antimony, and
germanium to the US. 

The US and China have been trading blows this year as they both battle to
control the semiconductor market, swapping sanctions and offering domestic
incentives. 

Chinas mineral wealth is crucial to the development of the chips, but the
country does not yet have the capabilities to develop the high-powered chips
domestically, so the battle between the two nations is likely to continue for
the foreseeable future.

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Link to news story:
https://www.techradar.com/pro/security/us-set-to-allow-tech-giants-to-control-
access-to-ai-chips

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