Trump dumps Bidens Export restrictions on AI chips

The Trump government is putting a line through a Biden government to curb the export of American AI chips. The AI Diffusion Act was a final convulsion of the Biden government and was published in the week before Trump took on. The measures had to limit the export from advanced AI chips to no fewer than 120 countries and thus guarantee America’s technological lead in the field of artificial intelligence.

A spokesperson for the Handelsministerie announced this week that the Diffusion Act in the bin ends up. The complex law would result in a lot of hassle and be impossible to check by the Office of Industry and Security, which supervises the export permits for the US Department of Trade. This organization has to shrink considerably, under Trump 2.0.

Export restrictions on chips have been not effective so far, because China is barely behind the US in AI technology. Smuggling of chips is hard to prevent because customers can purchase or lease them through intermediaries. In addition, China also develops AI processors on its own strength, In particular from Huawei. The chips of that company use more energy and are more expensive to produce. That is because Chinese chip factories do not have access to ASML’s EUV chip machines-which fall under Dutch export restrictions.

American chip companies and AI providers had a hard head in Bidens Diffusion Act: Export restrictions play their Chinese competition in the card. But what Trump then well To do to regulate the export of American computing power is not yet known. The tech industry asks for Clarity and predictability – It is missing so far.

The Trump government recently imposed export restrictions on Nvidia, which had manufactured a special short-wicked AI-chip for the Chinese market (the H20). That led to a 5.5 billion dollars for Nvidia, followed by A sharp fall in price. Nvidia’s CEO Jensen Huang had lobby at Trump in advance to keep access to China. Huang donated a million dollars to Trumps inaugurative party and promised to build supercomputers in the US for Hundreds of billions of dollars. Huangs Lobby seemed successful until Trump changed his mind again.

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