Covering dozens of countries, the new rules are intended to make sure the "the world's AI runs on American rails," and keeps it out of the hands of "malicious actors".
Allies, including the UK, are exempt from these new rules but the number of countries that have been affected has surprised many and drawn fierce criticism from some top US tech companies.
According to the US government powerful AI systems have the potential to exacerbate significant national security risks.
Nvidia, who will be among the companies most affected by the plan, warned that if these proposals were implemented it would weaken America's global competitiveness and undermine innovation. "By attempting to rig market outcomes and stifle competition, the Biden Administration's new rule threatens to squander America's hard-won technological advantage," the company said.
In fact, the new restrictions may make it extremely complicated for the company to deliver the revenue growth that investors have come to expect from a company that is now valued at over $3trn. Around 56% of its revenues are derived from customers outside the US, with China making up about 17% of sales.
The SIA has added to the criticism suggesting that, “the new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors.”
The new restrictions, which face a 120-day comment period before going into effect, set caps for exports of certain technology to most countries around the world and require US companies to get authorisation for sales there. The rules do include a process for foreign governments to sign agreements, in exchange for looser restrictions.
The big question is whether Trump will retain these regulations when he comes to office, as among his key campaign promises was a change to the government's approach to AI regulation. It’s believed that ever the negotiator Trump would be more willing to strike deals with individual companies.
