A prominent technology industry group has called on President Joe Biden's administration to halt a proposed regulation that could severely restrict global access to AI chips. The Information Technology Industry Council (ITI), which includes major players like Amazon, Microsoft, and Meta, voiced concerns that such restrictions would undermine U.S. leadership in artificial intelligence. The rule, expected to be finalized soon, is poised to place "arbitrary constraints" on U.S. companies attempting to serve overseas markets, effectively handing competitive advantage to foreign rivals.

Detailed reports from Reuters revealed that the U.S. Commerce Department's upcoming regulation intends to control AI chip exports to prevent potential misuse, particularly in enhancing China's military capabilities. ITI's CEO, Jason Oxman, expressed his discontent in a letter to U.S. Commerce Secretary Gina Raimondo, criticizing the rush to publish the rule right before the close of Biden’s term. He warned that "rushing a consequential and complex rule to completion could have significant adverse consequences."

While the ITI acknowledges the importance of national security, it argues that the potential risks to U.S. global leadership in AI must be seriously regarded. Instead of implementing an outright ban, the organization recommended that the administration issue any such measures as a proposed rule to allow for thorough discussion of the significant geopolitical and economic ramifications.

Industry criticism surrounding the anticipated regulations has intensified, with notable associations like the Semiconductor Industry Association also weighing in. Concerns align with remarks from Ken Glueck, an executive vice president at Oracle, who asserted that the legislation would introduce extensive regulations that could effectively govern almost all aspects of commercial cloud computing on a global scale for the first time, marking a potentially destructive shift for the U.S. tech sector.

Both the Commerce Department and the White House have yet to respond to the mounting concerns from the tech industry regarding the implications of these new rules.