Joe Biden’s Administration in the United States has announced a new standard for extend restrictions on the sale of chips and artificial intelligence (AI) to almost everyone. The regulation only leaves out 18 countries, the only ones that will not have restrictions on purchasing large-scale processors or obtaining AI licenses. The rest will be subject to limits on the number of chips they can purchase and permits they need to obtain to import American technology.
The largest company in the world, Nivida, has criticized the measure. “The regulations attempt to manipulate the market and repress competition – which is key to innovation -. Biden’s new regulations threaten to undermine America’s hard-won technological leadership,” points out the company in one of its blogs. “Although disguised as anti-China measures, these rules will do nothing to improve the security of the United States,” adds Ned Finkle, the company’s vice president of public affairs and the signatory of the text.
Jensen Huang’s chip company falls 2.2% to $132.9 per share. Micron loses 4% and Arm, 2.6%. lApplied Digital data centers fell 5.9%. In general, the semiconductor sector is pushing downwards in the Wall Street session.
Specifically, the regulations exempt 18 countries, mostly European, from all restrictions. The United Kingdom and Australia are also left out. The reason is that these allies have robust legislation, according to the Government. However, The rest of the countries will have several limitations on using US AI licenses or purchasing cutting-edge chips.
Whether or not this regulation ends up being applied will depend on Donald Trump, who will take office next week. The new rules announced by Biden would take effect within a year, so the ball remains in the Republican court.
The Government’s objective is for artificial intelligence to be developed in the United States or in allied countries. However, if third parties face significant difficulties in accessing these technologies, they may end up turning to China.
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