Microsoft is calling on the Trump administration to loosen Biden-era restrictions on exporting artificial intelligence (AI) chips.
The AI Proliferation Rules, released on President Biden's final day, set a cap on chip sales in most countries around the world, exempting a narrow list of 18 US allies and partners.
“As drafted, the rules undermine the priorities of the two Trump administrations: strengthen the US AI leadership and reduce the trade deficit of almost $1 trillion,” Microsoft vice-chairman and President Brad Smith said in a statement.
“Unchanged, Biden Rules will give China the strategic advantage in spreading its own AI technology over time, reflecting the rapid rise in 5G communications a decade ago,” he continued.
Microsoft warns that AI spreading rules are “over what you need,” making important US allies a two-stage category, making it more difficult to build AI data centers in these countries.
The high-tech giant points to Switzerland, Poland, Greece, Singapore, India, Indonesia, Israel, the United Arab Emirates and Saudi Arabia, with IT and other American companies running key data center operations.
“The unintended consequence of this approach is to encourage Tier 2 countries to look elsewhere for AI infrastructure and services,” Smith added. “And it's clear where they'll be forced to head. If it's not changed, the spreading rules will be a gift for China's rapidly expanding AI sector.”
The AI Proliferation Rules were the latest in a series of actions taken by the Biden administration to limit China's ability to acquire advanced AI chips created by American companies.
President Trump has tried to infiltrate from his AI predecessors and highlight innovation and light regulations. On his first day in office, Trump rescinded former President Biden's executive order on AI that attempted to address technology-related risks.
Vice President Vance passed the message to the AI Action Summit held in Paris earlier this month, denounced “overregulation” as it “can kill transformative industries as they take off.”
But the Trump administration has not previously walked various Biden administration restrictions on AI chip sales, including AI proliferation rules that faced a major pushback from the semiconductor industry announced last month.
Commerce Secretary Howard Lutonic also opposed the Chinese government and businesses to use US technology to build AI systems.
“We need to promote innovation and we need to stop helping them. Open platforms – Meta's open platforms have Deepseek relied on it. Nvidia's chips have bought a lot, found their way and drove the Deepseek model. Lutnick said during a confirmation hearing before the Senate Commerce Committee.
“If they're going to compete with us, let them compete, but stop competing with us using our tools.”
Lutnick oversees the Department of Industry and Security (BIS), the Department of Commerce organisation responsible for implementing import and export bans, along with other national security-related trade rules.
Microsoft said Thursday that it supported the “need to protect national security by preventing the enemy from acquiring advanced AI technology,” suggesting that other elements of the regulations should remain.
“This gives the Trump administration a bold opportunity to save them,” Smith said. “You need an overly complicated rule that requires 41 pages in the federal register, and a right-sized scale. Make it simple. Stop putting your American friends and allies to the second tier that undermines your confidence in continuing access to American products.”
