Microsoft Urges Relaxation of AI Chip Export Rules

Microsoft is urging the Trump administration to relax chip export restrictions imposed in the final days of the Biden administration, which currently affect key allies like Israel and Switzerland. These restrictions are part of a three-tier system aimed at limiting AI chip exports to countries like China to maintain U.S. dominance in AI. Microsoft argues that these measures could inadvertently benefit Beijing by pushing U.S. allies to turn to Chinese technology, potentially giving China a strategic advantage in AI infrastructure. The proposed changes have prompted a review by the Trump administration, with discussions on simplifying export-control rules while possibly strengthening them. Microsoft President Brad Smith expressed concerns that continuing with the current restrictions might not align with American business interests or foreign policy. The Wall Street Journal and Bloomberg report that Microsoft's proposal will be detailed in an upcoming blog post.