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U.S. Imposes New Export Controls on Advanced Artificial Intelligence Technologies and Chips
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U.S. Imposes New Export Controls on Advanced Artificial Intelligence Technologies and Chips

U.S. Imposes New Export Controls on Advanced Artificial Intelligence Technologies and Chips

By: Robert Slack , Melissa Duffy , Mark S. Ostrau , Trevor Coval , Jake Medvitz , Zach Harned , Gregory Rohling

What You Need To Know

  • On January 13 and 15, the Commerce Department’s Bureau of Industry and Security introduced two new export control rules tightening restrictions on advanced AI technologies and advanced computing integrated circuits and related items to safeguard national security and regulate global supply chains.
  • The new rules impose global licensing requirements for the export, reexport, and transfer of these items, with certain exceptions available for companies in allied countries.
  • They also establish a new compliance and authorization framework for data centers as validated end users and red flag expectations for Infrastructure-as-a-Service when used to train AI models.
  • Semiconductor manufacturers, including front-end fabricators and outsourced assembly and testing companies, must now conduct enhanced due diligence to prevent the diversion of advanced ICs to restricted entities or countries.
  • While the rules are effective immediately, companies have compliance grace periods until May 2025 for most provisions and can provide comments to shape final regulations.

The Commerce Department’s Bureau of Industry and Security (BIS) has released a pair of long-awaited rules that impose additional export controls on advanced computing integrated circuits (ICs) and artificial intelligence (AI) model weights. The new rules are designed to slow the proliferation of advanced AI technologies that could threaten U.S. national security interests and are a further step forward in the U.S. government’s attempt to regulate the global supply chain for advanced ICs and AI technologies.

Here, we summarize the key changes introduced by the new rules. Companies involved in the IC supply chain, data center, and AI industries should review the rules in full given their scope, technical complexity, and upcoming compliance deadlines.

Download the Full Alert.

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