EU to Raise Biden’s AI Chip Curbs with Trump Administration

(Bloomberg) -- The European Union will raise concerns with the US over a decision to restrict the export of artificial intelligence chips from the likes of Nvidia Corp. to some of its member states, according to people familiar with the matter.

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In one of its last moves in office, former President Joe Biden’s administration introduced a three-tier system to curb sales of AI chips used in data centers. The US placed Poland and a number of its allies in the EU’s east in the second-tier category of countries that face limits to the amount of computing power they can purchase.

The goal of the measures, which companies such as Nvidia and Oracle Corp. have warned could be catastrophic for the US tech industry, is to ensure that the global development of AI aligns with American standards and relies on US technology.

The rules split the globe into a group of close US allies including western European nations as well as Canada, Japan and the UK, which won’t face serious restrictions. The second category that will involve caps on AI chip imports covers most of the world, while the third group involves adversaries such as China and Russia, which are effectively barred from buying the powerful semiconductors.

The move goes against the EU’s single market by treating member states differently, said the people, who spoke on condition of anonymity to discuss private discussions. It would also hinder innovation in the bloc’s east and unfairly favor western European companies, one of the people said.

Polish Minister of Digital Affairs Krzysztof Gawkowski said the White House’s decision was “incomprehensible and is not based on any substantive reasons.” Foreign ministers from Latvia, Estonia and Lithuania said in a joint statement that it undermines “the development of our national AI eco-systems.”

Although Donald Trump made little specific mention of Europe in his inaugural address, he has repeatedly threatened tariffs and the bloc is bracing for the worst.

If attempts to engage with the new administration on alternatives such as a common approach to China fail, the EU has already prepared lists of goods to target if Trump moves forward with tariffs.

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