Microsoft has called on President Donald Trump’s administration to relax export restrictions on artificial intelligence chips that were put in place during the Biden administration, arguing that these measures unfairly disadvantage U.S. allies like India, Switzerland, and Israel. In a blog post released on Thursday, the company stated that the restrictions hinder the ability of American tech firms to develop and expand AI data centers in these nations.
The tighter U.S. limits on advanced AI chip exports to China have restricted American chipmakers and major tech companies from accessing one of the largest semiconductor markets, intensifying the global competition for AI infrastructure. Nvidia, the leading player in the market whose chips power applications such as OpenAI’s ChatGPT, could be particularly impacted by these curbs, especially since previous restrictions already limited its graphics processor exports to China.
In the final days of the Biden administration, the U.S. government announced further measures to restrict AI chip and technology exports, aiming to retain advanced computing capabilities domestically while blocking China’s access. Microsoft warned that these restrictions could inadvertently benefit China by prompting some U.S. allies to seek alternatives in the Chinese market due to a lack of available U.S. technology.
If the Biden-era rules remain unchanged, Microsoft cautioned that China could gain a strategic advantage in developing its own AI technology, reminiscent of its rapid growth in 5G telecommunications a decade ago. While companies like Huawei have struggled to match Nvidia in producing high-end chips, analysts suggest that Chinese startup DeepSeek’s cost-effective models could provide an opportunity.
Microsoft criticized the broad restrictions implemented by the Biden administration in January, labeling them as a potential boon for China’s burgeoning AI sector. According to the Wall Street Journal, which first reported on Microsoft’s recommendations, officials in the Trump administration are considering measures to tighten these restrictions while streamlining export-control regulations.
