Microsoft is urging the Trump administration to revise export controls on AI chips set by Biden, citing potential risks to US businesses and allies. The AI Diffusion rule categorizes countries into three tiers based on their access to American AI chips, with China, Russia, and North Korea placed in the most restricted tier. Microsoft President Brad Smith argues that the restrictions may push US allies, including several European and Middle Eastern nations, to seek chips from China, inadvertently benefiting China’s AI industry and jeopardizing US national security efforts.
If left unchanged, the Diffusion Rule will become a gift to China's rapidly expanding AI sector, hurting US businesses and pushing allies to seek alternatives.
This rule, dividing the world into three tiers, restricts access to advanced AI chips, with potential negative implications for US relations and international tech dynamics.
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