Government Now Controls Who Gets the Smart Robot Brains
Published Date: 1/15/2025
Rule
Summary
Starting January 13, 2025, the U.S. is updating rules to control the export of advanced computer chips and certain AI model parts to protect national security. Companies sending these tech items abroad have until May 15, 2025, to follow the new rules, with some parts delayed until January 15, 2026. These changes make it easier to share AI tech safely with trusted partners while keeping sensitive stuff secure.
Analyzed Economic Effects
10 provisions identified: 6 benefits, 4 costs, 0 mixed.
Worldwide License Requirement for Advanced Chips
The rule creates a worldwide license requirement for advanced computing integrated circuits classified under ECCNs 3A090.a and 4A090.a (and corresponding .z items), meaning exporters must obtain a U.S. license before exporting, reexporting, or transferring these chips to any destination.
New Controls on AI Model Weights (ECCN 4E091)
BIS adds a new control on the model weights of certain advanced closed-weight dual-use AI models under ECCN 4E091, requiring a license to export, reexport, or transfer those model weights.
Presumption of Denial for Very Large Compute Orders
BIS will apply a licensing policy that presumes denial for certain large quantities of advanced computing ICs needed to train frontier AI models; large transactions to destinations or end users of concern will face a presumption of denial in license review.
New License Exception AIA with Certification Rules
License Exception AIA (Sec. 740.27) lets eligible exporters ship certain advanced ICs and related items to entities in a listed set of low-risk destinations if the ultimate consignee provides a one-time certification and the exporter submits that certification before the first shipment. Reporting to BIS is required for certain large orders when cumulative Total Processing Performance (TPP) reaches 253,000,000.
License Exception ACM for Manufacturing Supply Chains
License Exception ACM allows exporters to ship eligible items (ECCNs 3A090, 4A090, and related .z items) to private-sector end users outside Country Group D:5 and Macau for development, production, or storage of such items, provided the items are ultimately destined outside D:5/Macau; recipients must keep distribution accounting updated at least every six months.
Low Processing Performance (LPP) Exception and TPP Limit
License Exception LPP (Sec. 740.29) permits exports or reexports of limited compute up to 26,900,000 Total Processing Performance (TPP) per calendar year to any single ultimate consignee (even across multiple exporters), requires a pre-shipment certification from the consignee, and is not available for shipments through distributors or to Macau/Country Group D:5.
List of Low-Risk Destinations Eligible for Easier Exports
The rule lists destinations eligible for streamlined treatment under Sec. 740.27: Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, Taiwan, the United Kingdom, and the United States. Entities in these destinations can obtain the most advanced ICs without a license if they meet the certification requirements in Sec. 740.27.
Data Center Validated End-User Changes
The rule bifurcates the Data Center Validated End-User (VEU) authorization into Universal and National VEU authorizations and expands mechanisms for entities to gain validated status so that qualified data centers can receive larger quantities of advanced ICs under security conditions.
Country Allocation Limits for 2025–2027
For destinations that are not Macau, Country Group D:5, or the listed low-risk countries, BIS will apply a licensing policy with specified country allocations for advanced IC exports covering the period 2025 through 2027; exports of ICs will be counted against these allocations starting on the rule's effective date.
Key Effective and Compliance Dates
The rule is effective January 13, 2025, but exporters, reexporters, and transferors do not have to comply until May 15, 2025. Three specific paragraphs (14, 15, and 18 of supplement no. 10 to part 748) have a later compliance date of January 15, 2026, and shipments en route on May 15, 2025 may complete under prior rules if finished by June 16, 2025.
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Key Dates
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