Microsoft Calls for Review of AI Chip Export Rules
Microsoft has urged former U.S. President Donald Trump’s team to reconsider recent export restrictions on artificial intelligence (AI) chips, warning that the current regulations could unintentionally benefit China. In a blog post released on Thursday, the tech giant outlined its concerns that the latest restrictions—aimed at limiting China’s access to advanced AI technology—disadvantage key U.S. allies.
Microsoft’s primary argument centers on the impact these restrictions have on allied nations, including India, Switzerland, and Israel. The company contends that these measures may hinder U.S. tech firms’ ability to build and expand AI data centers in these countries. This could, Microsoft warns, drive them toward Chinese alternatives, potentially accelerating China’s AI capabilities in the long run.
The export controls, which were further tightened in January, specifically affect companies like Nvidia, whose graphics processors are vital for AI applications such as OpenAI’s ChatGPT. Microsoft cautioned that these restrictions could inadvertently boost China’s AI sector, mirroring the country’s rapid advancements in 5G telecommunications, if changes aren’t made.
While Chinese chipmakers have not yet matched Nvidia’s high-end AI processors, firms like DeepSeek are emerging, developing cost-effective alternatives. This could give Beijing a competitive advantage in the AI race.
The Wall Street Journal first reported Microsoft’s position, noting that Trump’s team is currently reviewing the export-control policies. The White House has yet to comment on the matter.
