Microsoft Urges Easing of Chip Export Limits, Warns of 'Strategic Misstep' in AI Race

Mar 03, 2025
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Summary

Microsoft urges the US government to ease semiconductor export restrictions, warning that the curbs could backfire by driving allies to seek chips from China, potentially boosting China's AI capabilities and self-reliance in a strategic misstep that undermines America's lead in the global AI race.

Key Points

  • Microsoft called on Washington to loosen its semiconductor export curbs, warning that the government risked making a 'strategic misstep' in the global AI arms race.
  • The curbs are pushing US allies to seek chips from China, as they face caps on the number of chips they can buy from the US for AI infrastructure.
  • While the curbs aim to limit China's access to cutting-edge AI technology, analysts argue they could have the unintended effect of boosting China's self-reliance and making it a key exporter.

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