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BIS Introduces New AI Export Restrictions

Feb. 5, 2025
With its new rule, the Bureau of Industry and Security aims to limit foreign adversaries’ access to domestically developed, advanced artificial intelligence technologies.

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The Bureau of Industry and Security (BIS) is tightening the reins on the export of artificial intelligence (AI) technologies. The new restrictions are focused on reducing foreign adversaries’ access to advanced AI technologies that can be used to enhance military capabilities, improve surveillance systems and/or develop autonomous weapons.

Put simply, the BIS—the arm of the U.S. Commerce Department that handles export control—is making it harder for adversaries to use AI against the U.S. Exactly which AI technologies will fall under these new controls is still being determined. And with the uncertainty swirling around policies coming out of Washington right now, whether the new rules go into effect (or not) remains to be seen.

For now, at least, it looks like it’s full steam ahead. In its new Framework for Artificial Intelligence Diffusion report, BIS says it’s amending the Export Administration Regulations (EAR) to “enhance and refine its framework for applying export controls to regulate the global diffusion of the most advanced AI models and large clusters of advanced computing integrated circuits (ICs) to protect U.S. national security and foreign policy interests.”

Key Points to Know

With this new development, BIS is expanding existing controls on advanced computing ICs controlled under ECCNs 3A090.a and 4A090.a and corresponding items, as well as imposing new controls on the model weights of certain advanced closed-weight dual-use AI models controlled under newly created ECCN 4E091.

The Export Control Reform Act of 2018 (ECRA) emphasizes that national security requires the United States to maintain its leadership in the science, technology, engineering and manufacturing sectors, including foundational technology that is essential to innovation.

The ECRA requires the BIS’ rules to be transparent, predictable and timely, and have the flexibility to be adapted in light of evolving circumstances. 

Under the new rules, companies that produce AI models—the likes of OpenAI and Google—would need export licenses to send the “weights” attached to those models to many foreign countries, WSJ reports, noting that the limitations on exports of AI chips apply in different ways to different countries and companies.

“The 18 close U.S. allies will face no restrictions on purchases of chips,” it reports. “And smaller orders from customers around the world—up to around 1,700 advanced AI chips—won’t require a license or count against caps on countries’ chip purchases.”

Capping AI Chip Exports

According to WSJ, these new 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. They do include exemptions for a group of 18 close U.S. allies and partners, but more than 120 other countries—including U.S. allies—may face new hurdles in setting up AI computing facilities.

Graphics processing unit (GPU) maker Nvidia decried the new rules, noting that companies, startups and universities around the world are tapping mainstream AI to advance healthcare, agriculture, manufacturing, education and countless other fields, driving economic growth and unlocking the potential of nations. 

“Built on American technology, the adoption of AI around the world fuels growth and opportunity for industries at home and abroad,” the company said in a statement. “While cloaked in the guise of an ‘anti-China’ measure, these rules would do nothing to enhance U.S. security,” Nvidia continued. “The new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware.”

About the Author

Bridget McCrea | Contributing Writer | Supply Chain Connect

Bridget McCrea is a freelance writer who covers business and technology for various publications.

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