The AI Diffusion rule, implemented by Joe Biden, categorizes countries into three tiers for access to US-made AI chips. The top tier, including Taiwan and 17 other countries, faces no restrictions. However, about 20 countries, including China, Russia, and North Korea, are completely restricted. The middle tier, comprising 150 countries like Switzerland, Poland, Greece, Singapore, India, Indonesia, Israel, the UAE, and Saudi Arabia, must endure artificial limits on computing supply chains, keeping them at least a generation behind US technology. Microsoft President Brad Smith warns that these restrictions could hurt US businesses and push allies to seek supply chains outside the US, potentially benefiting China’s AI sector. The Trump administration has until mid-May to revise these rules, with sources indicating they are considering industry feedback to strengthen restrictions while simplifying export controls.
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