Biden divides EU with new AI chip export controls

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US President Joe Biden in a virtual meeting with business leaders about his landmark CHIPS Act, a law intended to encourage more semiconductor manufacturing in the US. [Anna Moneymaker/Getty Images]

The US has announced a new round of export controls on its artificial intelligence (AI) chips industry, and while it carves out exemptions for strategic allies, many EU member states did not make the cut.

Since a wave of AI innovation following the roll-out of ChatGPT and an ongoing economic contest with China to develop new tech, the geoeconomic value of chip manufacturing and graphics processing units (GPUs) used for AI has come to the fore.

The White House's announcement comes amid increasing attempts to restrict the transfer of the most advanced chips to non-trusted actors.

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