U.S. Targets China With New AI Curbs, Overriding Nvidia’s Objections

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By Asa Fitch and Liza Lin

The U.S. is imposing some of its strongest measures yet to limit Chinese advances in artificial intelligence, requiring companies to get government approval to export certain information about their AI models and set up large AI computing facilities overseas.

The rules, out Monday, are a final push by the Biden administration in a yearslong effort to use export controls to stem China’s advances in chip-making and AI, and they have sparked a backlash from companies including Nvidia NVDA. The rules impose caps on how many advanced AI chips can be exported to certain countries and require a license to export the data that underpins the most sophisticated AI systems.

Strict sales restrictions on these chips are already in place for China, Iran and other U.S. adversaries, and the new rules carve out exemptions for a group of 18 close U.S. allies and partners. These include countries such as the U.K., France and Germany, a senior administration official said. But a broad category of more than 120 other countries, including U.S. allies in the Middle East and Asia, are set to face new hurdles in setting up huge AI computing facilities.