Amazon, Microsoft, and Meta kick against new rule limiting global access to AI chips 

The companies under the aegis of the Information Technology Industry Council (ITI), voiced concerns over the last-minute rule of the administration, warning that the move could undermine U.S. leadership in artificial intelligence.

The rule, expected as early as Friday, is part of efforts to curb the use of advanced AI technologies by adversaries, particularly China by imposing sweeping restrictions on the sale of AI chips overseas.

While the target is China, this would also limit access to AI chips from the U.S. for several other countries of the world, including Nigeria, which is currently pushing its AI agenda.

The U.S. Commerce Department’s proposed restrictions aim to prevent AI technologies from bolstering China’s military capabilities.

“Rushing a consequential and complex rule to completion could have significant adverse consequences,” Oxman stated in the January 7 letter obtained by Reuters.

While the industry acknowledges the importance of national security, Oxman emphasized the potential risks to U.S. leadership in AI.

He urged the administration to adopt a more measured approach, calling for the rule to be issued as a proposed rulemaking to allow for broader consultation and deliberation.

The new U.S. rules come at a time when Microsoft is pushing the American AI leadership agenda to reduce China’s dominance in the global AI space.

In a January 3, blog post where he announced Microsoft’s plans to invest $80 billion in AI-enabled data centers this year, the company’s Vice Chairman and President, Brad Smith, the growing competition between U.S. and Chinese AI technologies, particularly in developing nations.