Canada has stayed on America’s good side with newly proposed regulations that would create a tiered system for exporting the world’s most advanced AI chips.
What happened: Despite ongoing spats over tariffs, Canada, along with 17 of America’s key allies, will have unlimited access to advanced graphics processing units (GPUs) for AI.
- As home to companies like Nvidia and AMD, whose chips are powering the AI revolution, the U.S. is flexing its power as a gatekeeper.
- Around 120 nations will be limited to imports of 50,000 GPUs per year, while those facing an arms embargo — like China and Russia — will be barred entirely.
Why it matters: These measures are Biden’s final push to ensure that only aligned countries have access, and that top foe China can’t catch up to U.S. capabilities. Officials estimate the U.S. has a six- to 18-month headstart on AI technologies. By forcing China to build without top chips, it hopes to widen that gap.
Yes, but: The U.S. chip industry is not happy with the proposal. Top dog Nvidia labelled it a "sweeping overreach," and lobbyists warn it would cede the market to foreign competitors. Angry companies could pressure the incoming Trump White House to make changes to the final rules.—QH