Microsoft plans to persuade US President Donald Trump to reconsider restrictions on exporting advanced artificial intelligence (AI) chips. The company argues that these curbs disadvantage US allies—such as India, Switzerland, and Israel—by limiting their access to semiconductors essential for training AI models in data centers. In a blog post published Thursday, February 27, Microsoft emphasized that these rules not only hinder allies but also restrict U.S. tech companies from building and expanding AI data centers in these countries.
“Left unchanged, the Biden rule will give China a strategic advantage in spreading over time its own AI technology, echoing its rapid ascent in 5G telecommunications a decade ago,” the company said. This comes as the Trump administration is reportedly planning to toughen AI chip restrictions on China.
The Biden administration’s sweeping restrictions introduced in January “will become a gift to China’s rapidly expanding AI sector”, Microsoft said.
Currently, under a tier-based system, both China and US allies like India, Israel, and Switzerland face restrictions on receiving the most advanced chips. Microsoft President Brad Smith noted in an interview with The Wall Street Journal that China is using this situation to position itself as a more reliable long-term partner for these nations.
The tightening of U.S. export controls on advanced AI chips to China has impeded American chipmakers and technology giants from accessing one of the largest semiconductor markets, intensifying the global competition for AI infrastructure supremacy. Nvidia, a leading company whose AI chips power applications like OpenAI’s ChatGPT, has been significantly affected by these restrictions. In the final days of the Joe Biden administration, the U.S. government announced plans to further limit AI chip and technology exports, aiming to retain advanced computing capabilities domestically while blocking China’s access.
Microsoft warns that such restrictions might inadvertently benefit Beijing by compelling U.S. allies to seek partnerships with China due to insufficient access to U.S. technology. The company stated, “Left unchanged, the Biden rule will give China a strategic advantage in spreading over time its own AI technology, echoing its rapid ascent in 5G telecommunications a decade ago.”
While Chinese telecommunications equipment makers like Huawei have struggled to match Nvidia in producing top-tier chips, startups such as DeepSeek are emerging with cost-effective models that could capitalize on the current situation.
Microsoft contends that the Biden administration’s extensive restrictions, introduced in January, could inadvertently bolster China’s rapidly growing AI sector. According to The Wall Street Journal, Trump administration officials are considering measures to strengthen these restrictions while simplifying export-control rules.
