US Updates AI Export Controls with New Chip Restrictions
The US Commerce Department has updated AI export controls, extending restrictions to advanced inference chips and cloud-based AI compute access. The rules close loopholes that allowed indirect access to restricted technology.
The US Commerce Department's Bureau of Industry and Security has announced expanded export controls on AI-related technology, extending restrictions beyond training chips to include advanced inference accelerators and cloud-based AI compute access. The rules take effect in 90 days.
The updated controls add NVIDIA's H200 and B200 inference-optimized GPUs to the restricted list for China and other countries of concern. Previously, export controls focused primarily on training-grade chips, creating a loophole where inference hardware could be exported freely. The new rules recognize that advanced inference chips can also be repurposed for training.
A significant new provision restricts cloud-based AI compute access, requiring US cloud providers to implement know-your-customer (KYC) procedures for AI workloads and report large compute purchases by entities in restricted countries. This closes a loophole where restricted entities accessed US AI chips through cloud services.
The technology industry has responded with mixed reactions. NVIDIA warned that the restrictions could cost US companies billions in lost revenue and push customers toward non-US alternatives. However, national security hawks argue the measures are necessary to prevent adversaries from developing advanced AI capabilities.
The rules include exceptions for multinational companies with operations in restricted countries, allowing them to use AI chips for internal business purposes under an end-use monitoring framework. Academic and research collaborations are also largely exempted.
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