Overview

• 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.