Senators Urge Commerce Dept. to Revamp AI Chip Controls
Seven Senate Republicans led by Sen. Pete Ricketts, R-Neb., called on the Commerce Department April 11 to replace its “burdensome” rule to regulate the global diffusion of advanced AI chips and models.
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In a letter to Commerce Secretary Howard Lutnick, the senators said the rule, published in the final days of the Biden administration (see 2501130026), “threatens to undermine” U.S. leadership and dominance in the technology sector, such as by imposing “complex restrictions” on purchases of U.S. technology.
While the rule “claims to provide secure ecosystems for the responsible diffusion of AI, this rushed midnight rule’s impact and overly broad scope will result in consequences that divorce it from its intent,” the senators wrote. “Fundamentally, the rule places burdensome constraints on U.S. companies that would be difficult to comply with and even harder for the federal government to enforce.”
Under the rule, only 18 nations are considered Tier 1 countries, meaning they would have access to U.S. technology, but even those countries would have to “comply with a burdensome and ever-evolving set of federal regulations," the letter says. Most nations fall into Tier 2 and would “face arbitrary purchase limits and a cumbersome licensing process to acquire U.S. computing technologies. Strikingly, key allies and partners like Israel have been inexplicably excluded from the top tier and placed into Tier 2.”
The senators said they’re concerned the restrictions could lead countries, particularly those in Tier 2, to buy Chinese technology instead or create their own AI technology stacks that are outside U.S. export controls. “Neither outcome furthers our nation’s long-term economic and national security goals,” the letter says.
The senators said the rule should be replaced quickly because the compliance deadline is May 15, only a month away.
“Every day this rule remains in place, American companies face mounting uncertainty, stalled investments, and the risk of losing critical global partnerships that cannot be easily regained,” the letter says. “Therefore, we urge you to withdraw this rule and propose an alternative that is effective in preventing Communist China from capturing the world market in a leading technology without compromising American advantages.”
Besides Ricketts, the letter is signed by Sens. Thom Tillis, R-N.C., Markwayne Mullin, R-Okla., Ted Budd, R-N.C., Roger Wicker, R-Miss., Eric Schmitt, R-Mo., and Tommy Tuberville, R-Ala.
The Commerce Department didn’t respond to a request for comment. Ricketts previously criticized the rule during a Senate Banking Committee hearing on Landon Heid’s nomination to be assistant secretary of commerce for export administration (see 2504100036).