Summary:
On January 13, the Biden administration proposed the "Framework for Artificial Intelligence Diffusion," a landmark rule with far-reaching implications for global AI development. It threads a difficult needle: encouraging U.S. AI technology globally, while impeding adversary access to the most sensitive of them, particularly for China and Russia, using a graduated system to govern AI chip exports. Tier 1 countries are close U.S. allies and get full access, Tier 2 nations face limits, and Tier 3 adversaries are blocked. The new framework encourages the use of U.S. standards around the world and deploys export controls as a tool of diplomacy but also levies compliance costs on U.S. companies including Nvidia Corp. and Oracle Corp.

Security Officer Comments:
In fact, critics included the European Union and Israel, who claim that the framework will be a push towards Tier 2 Chinese alternatives. However, currently, China cannot manufacture advanced AI chips in volume. The rule goes well with the security interests of the U.S., but it was about to face an uncertain future at the hands of the new Trump administration that might have tried to change or rescind it. But in any case, it is the flexible framework that will let U.S. technological dominance serve as a strategic instrument in international AI.

Link(s):
https://www.justsecurity.org/106545/the-future-of-the-ai-diffusion-framework/