Navigating the U.S. Framework for Artificial Intelligence Diffusion

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On January 15, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) introduced the “Framework for Artificial Intelligence Diffusion.” This interim final rule aims to regulate the export of advanced computing integrated circuits (ICs) and certain artificial intelligence (AI) model weights, balancing the promotion of AI’s benefits with the imperative of safeguarding U.S. national security and foreign policy interests.

Key Components of the Framework

1. Revised Export Controls

Advanced Computing ICs: The framework updates the Export Administration Regulations (EAR) to include stricter controls on the export, reexport, or transfer of advanced computing ICs.

AI Model Weights: A new control is introduced for certain advanced closed-weight dual-use AI models, specifically targeting their model weights

2. License Exceptions

Low-Risk Destinations and End Users: To facilitate legitimate trade and technological collaboration, the framework provides licensing exceptions for destinations, end users, and quantities of advanced computing ICs that pose a comparatively low risk of diversion or misuse.

3. Security Conditions for High-Risk Destinations

Enhanced Safeguards: In regions identified as posing heightened risks, the framework imposes stringent security conditions to ensure that advanced AI technologies are not misappropriated for activities contrary to U.S. interests.

4. Implications for U.S. Allies

The framework categorizes countries into tiers, each with distinct levels of access to U.S. AI technologies:

Trusted Nations: Countries such as the United Kingdom, Canada, Australia, and several European nations are considered trusted partners. These nations face fewer restrictions and can receive advanced computing technologies with streamlined security requirements.

Other Nations: Countries not classified as trusted partners must apply for special licenses to access advanced AI technology. This ensures that exports are evaluated on a case-by-case basis, considering potential risks to U.S. national security.

5. Industry Response

The introduction of this framework has elicited responses from industry stakeholders. For instance, Nvidia, a leading AI chip manufacturer, has expressed concerns that the new export controls could stifle innovation and undermine U.S. competitiveness in the global AI market (see https://t1p.de/sbcji).

Conclusion

The “Framework for Artificial Intelligence Diffusion” represents a strategic effort by the U.S. government to regulate the dissemination of advanced AI technologies, balancing the dual objectives of fostering innovation and protecting national security. As the global AI landscape evolves, the implications of this framework will continue to unfold, influencing international collaborations and technological advancements.

For a comprehensive understanding, you can access the full text of the interim final rule here:

https://www.federalregister.gov/documents/2025/01/15/2025-00636/framework-for-artificial-intelligence-diffusion

and the report on the new framework and Nvidia´s response here: 

https://www.investors.com/news/technology/nvidia-stock-sinks-biden-white-house-ai-export-rules

About the author

Dr. Andreas Leupold is an industry lawyer with 25+ experience in advising and litigating cases for German, US and UK clients.

He serves on the advisory board of mga, the leading international network for Industrial additive manufacturing and is a member of the legal working group of the Platform Industrie 4.0 established by the German Federal Ministry for Economic Affairs.

Andreas is a published author of various handbooks on industrial 3D Printing and IT-Law and most recently covered the legal aspects of 3D Printing in study for the NATO/NSPA.

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