Microsoft: Exempt Israel from AI-chip export restrictions

By Investor Empires On Feb 27, 2025

in Blog post Today, the newborn, “The Wall Street Journal”, calls on the Vice President of Microsoft and President Brad Smith to Israel, India, Switzerland and other countries to add to the list of countries exempt from the restrictions imposed on the exports of artificial intelligence chips produced by the United States of America

The restrictions, known as the rule of spread, are scheduled to enter into force in May, and can limit the ability of cloud computing giants such as Microsoft, Amazon and NVIDIA to charge graphics processors to countries that are considered to be the United States' allies but are still subject to restrictions on the export of chips used in Terms AI.

These restrictions were imposed more than a month ago, in the last days of the Biden Administration, as part of a planned plan to prevent advanced American technology leakage to China, Russia and North Korea.

The rules are western countries such as Britain, France and Spain from restrictions, but many allies from the United States, including Israel, India, Switzerland, Singapore, the United Arab Emirates, and Poland are placed in two average category, which aims to reduce the 50,000 AI-CIPs every until 2027.

Upon assuming his post, President Donald Trump refused to cancel the request, apparently for national security reasons. It is believed that restrictions were imposed on Israel because of its failure to adhere to the regulations designed to prevent American technology leakage into countries like China. Microsoft's invitation to obtain a list of countries exempt to focus on artificial intelligence chips used to train and operate artificial intelligence models.

While NVIDIA objected to this step as soon as it was announced, Microsoft has now joined the restrictions, because it seems that it will limit its ability to sell artificial intelligence processing and cloud services to major countries such as Israel, the UAE, India and Switzerland, because it does not adhere to not exporting more than half of its graphics processors outside the United States and encouraging them to stick.

Smith says that these countries will turn to China to make up for the shortage of graphics treatments. “The unintended result of this approach is to encourage the two countries to search elsewhere for infrastructure and artificial intelligence. It is clear where they will have to rotate. If it is left unchanged, the rule of spread will quickly become a gift for the China Sector, he writes.”

“Stop declining American friends and allies to a second layer that undermines their confidence in constant access to American products. Eliminate quantitative covers that will interfere with a well -performance economic market. It maintains more importantly, such as quality security standards and AI using restrictions that protect national security.”

It was published by Globes, Israel Business News – En.globes.co.il – on February 27, 2025.