The administration of outgoing US President Joe Biden is proposing a new framework for exporting advanced computer chips used to develop artificial intelligence, in an attempt to balance national security concerns about the technology with the economic interests of producers and other countries.

But the framework proposed Monday also raised concerns from chip industry executives who said the rules would limit access to existing chips used for video games and restrict in 120 countries chips used in data centers and artificial intelligence products. Mexico, Portugal, Israel and Switzerland are among the countries whose access may be limited.

Commerce Secretary Gina Raimondo said on a call with reporters who reviewed the framework that it is “important” to maintain America’s leadership in artificial intelligence and the development of AI-related computer chips. Rapidly developing artificial intelligence technology is allowing computers to produce narratives, achieve breakthroughs in scientific research, automate driving, and foster a host of other transformations that could reshape economies and warfare.

“As artificial intelligence becomes more powerful, the risks to our national security are becoming more acute,” Raimondo said. The framework is designed to “protect the most advanced AI technology and ensure it stays out of the hands of our foreign adversaries, but also enables the benefits to be widely disseminated and shared with partner countries.”

White House National Security Advisor Jake Sullivan stressed that the framework will ensure that the latest aspects of artificial intelligence are developed within the United States and with its closest allies rather than being transferred abroad, such as the battery and renewable energy sectors.

The technology industry group, the Information Technology Industry Council, warned Raimondo in a letter last week that the new rule hastily implemented by the Democratic administration could fragment global supply chains and put U.S. companies at a disadvantage. Another group, the Semiconductor Industry Association (SIA), said Monday it was disappointed that the policy was “rushed through” ahead of the presidential transition period. President-elect Donald Trump is scheduled to take office on January 20.

“The new rule risks causing unintended and lasting harm to the U.S. economy and global competitiveness in semiconductors and artificial intelligence by ceding strategic markets to our competitors,” said John Neufer, president and CEO of SIA.

One industry executive, who is familiar with the framework and insisted on anonymity to discuss it, said the proposed restrictions would limit access to chips already used for video games despite claims made by the government to the contrary. This will also restrict companies that can build data centers abroad, the executive said.

“Control technology worldwide”

Because the framework includes a 120-day comment period, the incoming Republican Trump administration will eventually be able to set the rules for foreign sales of advanced computer chips. This constitutes a scenario in which Trump is forced to balance the economic interests of the United States with the need to keep the country and its allies safe.

Government officials said they felt the need to move quickly in hopes of maintaining what is seen as a six- to 18-month American advantage in AI over rivals like China, a start that could easily be eroded if rivals manage to stockpile AI. Chips and make more winnings.

Ned Finkel, vice president of external affairs at chipmaker Nvidia, said in a statement that the previous Trump administration helped create the foundation for AI development, and that the proposed framework would hurt innovation without achieving its stated national security goals.

“While these rules are disguised as anti-China measures, they will do nothing to enhance the security of the United States,” he said. “The new rules will control technology around the world, including technology that is already widely available in gaming PCs and consumer devices.”

Under that framework, nearly 20 key allies and partners would face no restrictions on access to chips, but other countries would face limits on the chips they can import, according to a fact sheet provided by the White House.

Unrestricted allies include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan and the United Kingdom.

Users outside of these close allies can purchase up to 50,000 GPUs per country. There will also be deals between governments that could raise the cap to 100,000 if renewable energy and technology security goals are in line with US goals.

Organizations in some countries can also apply for legal status that allows them to purchase up to 320,000 advanced GPUs over two years. However, there will be limits to how much AI computational power companies and other organizations can put out there.

Computer chip orders equivalent to 1,700 advanced graphics processing units will not need an import license or count toward the national chip cap. Excluding the 1,700 GPUs is likely to help meet demands from universities and medical institutions rather than data centers.

The new rules are not expected to hamper the AI-driven data center expansion plans of leading cloud computing providers such as Amazon, Google and Microsoft due to exemptions granted to trusted companies seeking large clusters of advanced AI chips.

China’s Ministry of Commerce said in response to the proposed rules that China would take necessary measures to protect its “legitimate rights and interests.”