The Information Technology Industry Council (IT) has written to US commerce secretary Gina Raimondo urging the Biden administration to rethink its proposal to make US tech giants global gatekeepers for AI chips.
Dubbed the Export Control Framework for Artificial Intelligence Diffusion, the new rules were first reported by Reuters in December 2024.
Should it come into force, the rule change would allow the designated companies to offer AI capabilities within their cloud services overseas without needing a license, providing they comply with reporting requirements designed to stop Chinese organizations from getting hold of AI chips.
On January 7, Reuters separately reported that the trade association, which represents organizations from the information and communications technology, including Amazon, Meta, and Microsoft, has said the rule change would have “significant adverse consequences.”
Jason Oxman, CEO of the ITI, reportedly warned President Biden against rushing a “consequential and complex rule to completion” in the dying days of his presidency, adding that while the trade body appreciated the need for national security, the proposal from the Biden administration would have significant geopolitical and economic implications.
According to the letter, which has been seen by Reuters, the ITI has asked that any should Biden implement any new controls, they should be issued as proposed rulemaking instead of a hard and fast rule.
In its own statement, the Semiconductor Industry Association (SIA) said it was “deeply concerned by the unprecedented scope and complexity of this potential regulation,” noting that it was developed without industry input and as a result “could significantly undercut US leadership and competitiveness in semiconductor technology and advanced AI systems.”
The SIA added that the government should not be trying to implement such a “significant shift in policy” during a transitional period and instead also urged President Biden to issue a proposed rule, or pass the policy over to Trump “to ensure there is appropriate opportunity… to thoughtfully address this critical matter.”
President-elect Trump will be inaugurated on January 20.
