Tech giant warns US export curbs could give China a strategic edge in the global AI race
Microsoft is urging former US President Donald Trump to reconsider AI-chip export restrictions that limit the supply of advanced semiconductors to US allies, including India, UAE, Switzerland, and Israel. The company warns that the Biden-era curbs may inadvertently empower China’s AI sector, similar to its rapid growth in 5G telecommunications a decade ago, reported timesofindia.indiatimes.com.
Microsoft argues the rules will hurt US allies and benefit China’s AI ambitions
In a blog post published on February 27, Microsoft warned that the Biden administration’s January-imposed restrictions on AI-chip exports hinder US tech companies from building AI data centers in allied nations.
The company fears that if the rules remain unchanged, China will leverage the opportunity to strengthen its AI capabilities and establish itself as a more reliable technology partner for countries affected by the curbs.
Microsoft’s President Brad Smith, in an interview with The Wall Street Journal, expressed concern that these restrictions are not only weakening US allies but also pushing them closer to China for access to advanced computing technology.
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The restrictions have particularly impacted US chipmakers like Nvidia, whose advanced AI chips power applications such as OpenAI’s ChatGPT
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The Biden administration introduced these measures to prevent China from gaining access to cutting-edge technology, but Microsoft argues that they risk backfiring by accelerating China’s AI development
The company emphasized, “Left unchanged, the Biden rule will give China a strategic advantage in spreading its own AI technology, echoing its rapid ascent in 5G telecommunications a decade ago.”
Emerging Chinese AI startups could capitalize on US chip restrictions
While Chinese companies like Huawei have struggled to match Nvidia’s advanced chip-making capabilities, emerging startups such as DeepSeek are offering cost-effective AI models. This, Microsoft argues, could allow China to exploit the current environment and expand its AI dominance.
According to The Wall Street Journal, Trump administration officials are now exploring ways to strengthen the restrictions while simplifying export rules to prevent further damage to US tech interests abroad.
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