Microsoft is reportedly gearing up to urge a potential second-term Trump administration to reassess restrictions on the export of artificial intelligence chips.
According to a recent report, the tech giant believes the current regulations, which were tightened during the Biden administration, unnecessarily disadvantage U.S. allies.
Earlier this week, a blog post by the company stated that existing export rules were negatively impacting nations like India, Switzerland, and Israel. Microsoft argues these limitations hinder the ability of U.S. tech firms to develop and expand AI data centers within these countries.
The restrictions, particularly those aimed at curbing the flow of advanced AI chips to Beijing, have significant consequences. They prevent American chipmakers and Big Tech from accessing a major market for semiconductors, thus intensifying the global competition for dominance in AI infrastructure.
Nvidia, whose AI chips are crucial for applications like OpenAI’s ChatGPT, could face substantial challenges due to these export curbs. Prior restrictions have already limited exports of its graphics processors to Beijing.
The Biden administration’s move to further restrict AI chip and technology exports aimed to maintain advanced computing power within the U.S. while limiting China’s access. However, Microsoft suggests these measures could backfire.
“Left unchanged, the Biden rule will give China a strategic advantage in spreading over time its own AI technology, echoing its rapid ascent in 5G telecommunications a decade ago,” the company stated.
While Huawei and other Chinese firms have struggled to match Nvidia in producing high-end chips, Chinese startup DeepSeek’s inference-focused, low-cost models have the potential to gain ground, according to analysts.
Microsoft views the extensive restrictions introduced in January as “a gift to China’s rapidly expanding AI sector.”
The Wall Street Journal previously reported on Microsoft’s proposals. The report also indicated that while the Trump administration is considering ways to strengthen export controls, it is also considering simplifying these regulations. The White House has yet to release any statements in response to this request for a report.
