The rule was to ensure that the largest data centers in the world build the United States and their allies rather than in the Middle East or elsewhere. Biden officials were skeptical about autocratic tendencies and ties to China and the ties of Saida Arabia. They also argued that this rule would reduce China’s access to AI chips and data centers in other countries, which could strengthen strategic and military skills in Beijing.
The rule, which was scheduled for the effect of 15 May, allowed unlimited sales of AI chips to 18 allies such as Britain, Germany and Japan, and blocked the sale of China, Iran and other opponents. All other countries, including Saudi Arabia, the United Arab Emirates, Qatar, India, Israel and Poland, faced the number of chips that they could buy, and many of them were not happy.
Jim Secreto, the former chief of the Staff for the Sales Department, said the rule was aimed at maintaining national security and forming the future of critical technology. Without regulation, the availability of cheap energy and capital abroad can mean that more data centers would be built outside the United States than inside.
“Whoever controls AI is the geopolitical question of our time,” he said.
Companies such as Nvidia and Oracle also protested against the rule and stated that it would fail on the American technological line. Trump’s officials seemed to agree with this argument. On Wednesday, the administration submitted to the submission to publish a new rule that would cancel the previous framework, even if it did not give any timeline to change.
“The biden AI rule is too complex, bureaucratic and American Innovation,” said Ben Kass, a spokesman for the trade department that oversees technology controls. “We are replacing it a simpler and clearer framework that prefers American dominance and releases the full potential of American innovation AI.”
