Ensure that AI developments occur in trusted environments, and minimal risk of unauthorised transfers.The US Interim Final Rule on Artificial Intelligence Diffusion requires countries interesting in purchasing advanced AI chips to obtain a license for this. The regulations categorise countries into three tiers to determine their access. The first includes 18 allied nations such as the United Kingdom, Japan, Australia, and the Netherlands, which face no restrictions. Tier 2 includes countries such as India, Singapore, Israel, and others which face certain caps on imports of GPUs from the US and require licensing. Users outside of close allies could buy up to 50,000 GPUs till 2027. There would also be government-to-government deals that can hike the cap to 100,000. Tier 3 includes arms-embargoed nations such as China, Russia, and Iran, which are barred from buying GPUs. The US government said chip orders with collective computation power up to roughly 1,700 advanced GPUs do not require a license and do not count against national chip caps. Further, institutions in certain countries could apply for a National Verified End User status, that would let them buy up to 320,000 GPUs over a two-year period. The new rules come into effect in the next three months.
What are the restrictions?
The US Interim Final Rule on Artificial Intelligence Diffusion requires countries interesting in purchasing advanced AI chips to obtain a license for this. The regulations categorise countries into three tiers to determine their access. The first includes 18 allied nations such as the United Kingdom, Japan, Australia, and the Netherlands, which face no restrictions. Tier 2 includes countries such as India, Singapore, Israel, and others which face certain caps on imports of GPUs from the US and require licensing. Users outside of close allies could buy up to 50,000 GPUs till 2027. There would also be government-to-government deals that can hike the cap to 100,000. Tier 3 includes arms embargoed nations such as China, Russia, and Iran, which are barred from buying GPUs. The US government said chip orders with collective computation power up to roughly 1,700 advanced GPUs do not require a license and do not count against national chip caps. Further, institutions in certain countries could apply for a National Verified End User status, that would let them buy up to 320,000 GPUs over a two year period. The new rules come into effect in the next three months.
Why did the US impose these caps?
The key reason is to prevent China, Iran and Russia, seen as adversaries of the US, from getting access to these technologies. The US government says the policy will help build a trusted technology ecosystem and allow it to protect against the national security risks associated with AI, while ensuring the controls do not stifle innovation or US technological leadership. Managing these very real national security risks requires taking into account the evolution of AI technology, the capabilities of our adversaries, and the desire of our allies to share in the benefits of this technology,” Gina Raimondo, US secretary of commerce, said.
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