Eighteen countries, including the UK, Canada, Sweden, France, Germany, Japan, and South Korea, are exempted from the AI export caps. The Biden administration had previously banned the export of some powerful AI chips to China, Russia, and other adversaries in rules from 2022 and 2023.
But other countries friendly to the US, including Mexico, Israel, India, and Saudi Arabia, would be subject to the quotas. The export limits would take effect 120 days from the Jan. 13 order, and it’s unclear whether the incoming Trump administration will amend or rewrite the rule, although Trump has targeted China as a primary economic competitor of the US.
The cost of AI
In addition to cutting off most of the world from large AI chip purchases, the rule will force countries such as China and Russia to pump up their own AI capabilities, ultimately reducing US AI leadership, claims Aible’s Sengupta.
