The Biden administration is considering closing a loophole that gives Chinese companies access to American artificial intelligence (AI) chips through units located overseas, according to four people familiar with the matter.
new restrictions on shipments of AI chips and chipmaking tools to China, seeking to thwart its military advances. Those rules arein the coming days. A person familiar with the situation said the measure could be included in those new restrictions.
The efforts to close the loophole show how the Biden administration is struggling to cut China off from top AI technology and how difficult it is to plug every gap in export controls. While it would be illegal under U.S. law to ship those AI chips to mainland China, it is very difficult for the United States to police those transactions, experts said, noting that China-based employees could legally access the chips located at foreign subsidiaries remotely as well.
China's AI capability depends on its access to U.S. chips. CSET found in a June 2022 report that out of 97 individual AI chips procured via Chinese military tenders over an 8-month period in 2020, nearly all of them were designed by U.S.-based companies Nvidia, Xilinx, Intel, and Microsemi.Nvidia and AMD to restrict shipments of the AI chips beyond China to other regions, including some countries in the Middle East.
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