Biden administration unveils export controls on AI models, chips | FedScoop<\/title> <meta name=\"description\" content=\"The so-called AI diffusion rule from Commerce\u2019s Bureau of Industry and Security faced swift pushback from industry.\"> <link rel=\"canonical\" href=\"https:\/\/fedscoop.com\/commerce-ai-diffusion-rule-biden-admin-industry-security\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Biden administration unveils export controls on AI models, chips\"> <meta property=\"og:description\" content=\"The so-called AI diffusion rule from Commerce\u2019s Bureau of Industry and Security faced swift pushback from industry.\"> <meta property=\"og:url\" content=\"https:\/\/fedscoop.com\/commerce-ai-diffusion-rule-biden-admin-industry-security\/\"> <meta property=\"og:site_name\" content=\"FedScoop\"> <meta property=\"article:published_time\" content=\"2025-01-13T19:52:56+00:00\"> <meta 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readability=\"0.82\"> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"25.838680926916\">\n<div class=\"single-article__header-content\" readability=\"34.645161290323\">\n<p> The so-called AI diffusion rule from Commerce\u2019s Bureau of Industry and Security faced swift pushback from industry. <\/p>\n<p>  <br \/>\n<audio id=\"audio-player\" src=\"https:\/\/wp-tts-cdn.api.scpnewsgrp.com\/fedscoop\/82553\/english.openai.mp3\"><\/audio> <\/p>\n<div readability=\"11\">\n<div>\n<p>Listen to this article<\/p>\n<p>  <\/p>\n<p>0:00<\/p>\n<\/p><\/div>\n<p>  <\/p>\n<p> <span id=\"tts-tooltip\">Learn more.<\/span> <span> This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment. <\/span> <\/p>\n<\/div>\n<p>  <\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"427\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips.jpg?resize=640%2C427&ssl=1\" class=\"single-article__cover-image wp-post-image\" alt decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-2.jpg 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-2.jpg?resize=300,200 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-2.jpg?resize=768,512 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-2.jpg?resize=600,400 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-2.jpg?resize=252,168 252w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-2.jpg?resize=505,337 505w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-2.jpg?resize=1012,675 1012w\" sizes=\"(max-width: 1012px) 100vw, 1012px\"><figcaption> Commerce Secreatry Gina Raimondo speaks on the first day of the Democratic National Convention at the United Center in Chicago on Aug. 19, 2024. (Photo by MANDEL NGAN\/AFP via Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"46.161076233184\"><body readability=\"94.145623235175\"><\/p>\n<p>A new rule from the Commerce Department will institute a series of export controls designed to secure \u201cthe responsible use and diffusion\u201d of artificial intelligence, part of an overarching Biden administration connecting AI to national security and foreign policy interests.<\/p>\n<p>The <a href=\"https:\/\/www.bis.gov\/press-release\/biden-harris-administration-announces-regulatory-framework-responsible-diffusion\">regulatory framework unveiled Monday<\/a> by Commerce\u2019s Bureau of Industry and Security places controls on specific closed AI model weights as well as on advanced computing chips. The rule also establishes controls on new license exceptions and updates to <a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/10\/02\/2024-22587\/expansion-of-validated-end-user-authorization-data-center-validated-end-user-authorization\">Data Center Validated End User<\/a> (VEU) authorization<\/p>\n<p>Commerce Secretary Gina Raimondo said in a statement that the policy would help construct a globally trusted tech ecosystem and assist the United States in protecting itself against national security threats associated with AI, while not compromising innovation.<\/p>\n<p>\u201cManaging these very real national security risks requires taking into account the evolution of AI technology, the capabilities of our adversaries, and the desire of our allies to share in the benefits of this technology,\u201d Raimondo said. \u201cWe\u2019ve done that with this rule, and it will help safeguard the most advanced AI technology and help ensure it stays out of the hands of our foreign adversaries, while we continue to broadly share the benefits with partner countries.\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>The new controls are intended to safeguard rapidly developing AI models from malicious actors that seek to threaten U.S. national security and foreign policy, the press release announcing the rule said, pointing specifically to the development of chemical or biological weapons, offensive cyber operations, mass surveillance and human rights abuses.<\/p>\n<p>Though Commerce is putting security at a premium with the framework, the Biden administration said the rules were written to ensure that \u201chumanity can reap\u201d the technology\u2019s \u201ccritical benefits,\u201d opening up access to the most advanced U.S. AI models and large clusters of advanced computing integrated circuits to \u201cresponsible foreign entities and destinations\u201d that agree to follow specific safety and security mitigations. <\/p>\n<p>But early industry reaction to the rule appears largely skeptical. Jason Oxman, president and CEO of the Information Technology Industry Council \u2014 a leading trade group that r<a href=\"https:\/\/www.itic.org\/about\/membership\/iti-members\">epresents a host of software and AI companies<\/a> \u2014 said in a statement that the global export controls on AI-related advanced compute tools \u201cthreatens to fragment global supply chains and discourage the use of U.S. technology.\u201d<\/p>\n<p>\u201cRushing a consequential and complex rule to completion without robust stakeholder engagement pays little regard to its impact on U.S. competitiveness and global alliances \u2014 which the Biden Administration has worked hard to strengthen,\u201d Oxman said. \u201cWe urge the incoming Trump-Vance Administration to withdraw the rule and engage with industry so that we can work together to craft effective policies to address these national security concerns.\u201d\u202f\u202f <\/p>\n<p>Ned Finkle, vice president of government affairs at NVIDIA, the semiconductor and AI computing giant, said the rules were \u201c<a href=\"https:\/\/blogs.nvidia.com\/blog\/ai-policy\/\">cloaked in the guise of an \u2018anti-China\u2019 measure<\/a>\u201d but \u201cwould do nothing to enhance U.S. security.\u201d <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>\u201cThe new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware,\u201d Finkle wrote. \u201cRather than mitigate any threat, the new Biden rules would only weaken America\u2019s global competitiveness, undermining the innovation that has kept the U.S. ahead.\u201d<\/p>\n<p>The rule would require authorizations for the export of advanced computing chips but creates exceptions for certain supply chains and allies and partners. There are also changes to license applications, with those now reviewed \u201cunder a presumption of approval until the total quantity of controlled chips exported or reexported to that country exceeds a specified allocation.\u201d<\/p>\n<p>Additionally, model weights of the most advanced closed-weight AI models will be subject to controls, though there will be an exception made for open models. BIS, meanwhile, will be charged with enforcing security conditions meant to \u201csafeguard the storage of the most advanced models\u201d in the name of national security.<\/p>\n<p>\u201cAI has been rapidly progressing over the last decade and will only grow more powerful, resulting in the emergence of highly capable models with significant dual-use applications,\u201d said Alan F. Estevez, undersecretary of Commerce for industry and security. \u201cThis rule will protect national security and advance U.S. foreign policy by ensuring the responsible diffusion of frontier AI technology across the world.\u201d<\/p>\n<p>The framework is set to be <a href=\"https:\/\/public-inspection.federalregister.gov\/2025-00636.pdf\">published in the Federal Register<\/a> on Wednesday, kicking off a 120-day comment period. With President-elect Donald Trump set to take office next week, the framework could face changes in the months ahead.<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"3.961038961039\">\n<div class=\"author-card\" readability=\"15\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/01\/biden-administration-unveils-export-controls-on-ai-models-chips-1.jpg?w=640&ssl=1\" alt=\"Matt Bracken\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Matt Bracken<\/h4>\n<p> Matt Bracken is the managing editor of FedScoop and CyberScoop, overseeing coverage of federal government technology policy and cybersecurity. Before joining Scoop News Group in 2023, Matt was a senior editor at Morning Consult, leading data-driven coverage of tech, finance, health and energy. He previously worked in various editorial roles at The Baltimore Sun and the Arizona Daily Star. 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{"id":6893,"date":"2025-01-13T13:54:47","date_gmt":"2025-01-13T19:54:47","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=83112"},"modified":"2025-01-13T13:54:47","modified_gmt":"2025-01-13T19:54:47","slug":"biden-administration-unveils-export-controls-on-ai-models-chips","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2025\/01\/13\/biden-administration-unveils-export-controls-on-ai-models-chips\/","title":{"rendered":"Biden administration unveils export controls on AI models, chips"},"content":{"rendered":"