The Biden Administration restricted exports of advanced computer chips used in artificial intelligence (AI) following two significant events over the holidays. OpenAI achieved an 88% on a reasoning test, and China’s DeepSeek introduced an advanced AI model surpassing American open-source language models. OpenAI’s CEO believes AI powerful enough to perform valuable work and new scientific discoveries will emerge during the president’s term, with China catching up. Different U.S. officials argue that limiting China’s access to AI is crucial for national security. However, the U.S. government intensified its policy to restrict advanced chips from China, attempting to impede its AI development.
The Biden Administration added new regulations to make it harder for China to obtain cutting-edge AI chips through smuggling. The sanctions aim to limit China’s access to advanced AI chips and establish quotas and licensing requirements. Many speculate that the Trump Administration will find this policy appealing due to the critical moment in AI technology competition with China. The majority support the new rules believing it will hinder China’s AI ecosystem. Nvidia criticized the new regulations, claiming they would benefit China, and others fear that it would push buyers toward Chinese AI chips. However, some argue China does not have the time or capability to produce advanced AI chips, and the alternative to American AI chips isn’t Chinese AI chips but no AI chips.
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