Microsoft Urges Trump Administration to Revise AI Chip Export Rules

The tech giant warns that restrictive Biden-era regulations could push U.S. allies toward Chinese suppliers, undermining American AI leadership.

Microsoft President Brad Smith criticized the Biden administration's AI Diffusion Rule, which limits AI chip exports to most countries, including key U.S. allies.
The rule places countries like India, Israel, and Switzerland in a second-tier category, restricting their access to American AI technology and infrastructure.
Smith argued that the restrictions could drive affected nations to seek AI components from China, bolstering China's AI sector and global influence.
The Trump administration is reviewing the regulation, with some officials considering further tightening restrictions while simplifying export controls.
Microsoft supports retaining security-focused provisions but calls for removing quantitative limits and simplifying the rules to maintain U.S. competitiveness in AI.