The Biden Administration and the U.S. Department of Commerce's Bureau of Industry and Security (BIS) on Jan. 13, 2025, announced controls on advanced computing chips and certain closed artificial intelligence (AI) model weights, alongside new license exceptions and updates to the Data Center Validated End User (VEU) authorization. The rule, if not overturned by President-Elect Donald Trump, may have extensive implications to the Israeli AI industry.
The rule imposes a set of restrictions on the export of AI chips and will affect numerous countries around the world, including Israel. These restrictions will limit the extent of AI computing power that countries may obtain from the U.S. without a license. While the primary goal of the regulation is to limit the ability of China and other adversarial nations to develop advanced AI technology, the new rule divides the world into three tiers. Israel, along with 150 others, is classified as a second-tier country. Although AI chip exports to these countries will still be permitted, they will be subject to strict limitations.
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