Microsoft warns Trump against strategic misstep in AI race

Date:
Fri, 28 Feb 2025 15:14:56 +0000

Description:
The US government has implemented strict limits on chip exports - but
Microsoft isnt happy.

FULL STORY ======================================================================
- Microsoft argues against current restrictions on semiconductors
- Tech giant wants Trump to loosen export constraints
- The US and China are in the middle of an AI race

Microsoft has called on President Trump to ease export restrictions on
crucial computer chips needed for AI technology.

The previous Biden administration implemented a cap on the export of American AI components to many foreign markets, amid concerns for national security,
and while these restrictions are as yet unchanged by the Trump
administration, Microsoft has warned the current President that this could
give China a strategic advantage in spreading its own AI technology, as emerging markets will be forced to turn away from the states for advanced technologies.

The limits, Microsoft argues, undermines two key priorities for US foreign policy; strengthening the USs leadership in AI technologies, and reducing the countrys trade deficit.

Semiconductor stipulations

It says allies of the US were also affected by the restrictions , like
Taiwan, South Korea, India, and Switzerland. The export restrictions go
beyond whats needed, and puts these allies in a Tier Two category and imposes quantitative limits on the ability of American tech companies to build and expand AI datacenters in their countries.

The unintended consequence of this approach is to encourage Tier Two
countries to look elsewhere for AI infrastructure and services, Microsoft
noted in its statement.

And its obvious where they will be forced to turn. If left unchanged, the Diffusion Rule will become a gift to Chinas rapidly expanding AI sector.

The US and China are engaged in a chip war, with China declaring US chips unsafe, urging companies to use domestic semiconductors , with both nations racing to develop and build high-powered chips domestically.

Earlier in 2025, Microsoft revealed plans to spend $80 billion on AI data centers , with a large component of this plan focusing on export power.

In 2024, Microsoft also pledged over $35 billion in investments across 14 countries to build AI and data center infrastructure, and has reiterated that the US needs to cooperate with allies and friends to maintain its position at the top.

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Link to news story: https://www.techradar.com/pro/microsoft-warns-trump-against-strategic-misstep- in-ai-race

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