The rule was an effort to ensure that the world’s largest data centers were built by the United States and their allies, instead of the Middle East or Alder. Biden officials were skeptical about the trends and autocratic ties of the EAU and Saudi Arabia with China. They also argued that the rule would limit China’s access to AI chips and data centers in other countries, which could be Beijing’s strategic and military capabilities.
The rule, which was scheduled to enter into force on May 15, allowed the unlimited chips sales to 18 allies such as Great Britain, Germany and Japan, and blocked sales to China, Iran and other adversaries. All other countries, including Saudi Arabia, United Arab Emirates, Qatar, India, Israel and Poland, faced hats in the amount of chips they could buy, and many were not happy with that.
Jim Secret, former deputy director of the Department of Commerce, said that the rule aimed to preserve national security and shape the future of critical technology. Without regulation, the availability of cheap energy and capital abroad could mean that more data centers would be built outside the United States than inside.
“Who controls AI is the geopolitical issue of our time,” he said.
Companies such as Nvidia and Oracle also protested the rule, saying that it would be counterproductive in the technological leadership of the United States. Trump’s officials seemed to agree with that argument. On Wednesday, the Administration presented a presentation that said that it would publish a new rule that would rescind the previous framework, although it does not cool in the timeline for change.
“The Biden AI rule is a complex, bureaucratic and would hinder American innovation,” said Ben Kass, spokesman for the Department of Commerce, who control them in a statement in a statement. “We are replacing it with a simpler and more clear frame that prioritizes the mastery of the United States and unleashes all the potential of the American innovation of AI.”
