Biden's Final Fling: Curbs on US-Made AI Chips, Russia Sanctions

US President Joe Biden is preparing for a final flurry of activity before he steps down to make way for Donald Trump in just over a week.

The outgoing president wants to impose new regulations on artificial intelligence (AI) and prevent US companies – notably US chipmakers such as Nvidia – supporting technological development in China and other ‘adversaries.’

The regulations aim to ensure that the US and its allies maintain control over AI development, according to a report by the New York Times on Thursday.

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The proposed rules will seek to restrict shipments of US-made AI chips to “adversaries such as China and Russia,” but allow European countries, Japan and other close allies to purchase them without restrictions. Over 100 other countries will face quotas, the NYT report said.

The regulations – said to have sparked a lot of debate among tech companies and government officials – will seek to ensure that trusted American companies such as Google and Microsoft get priority access to AI chips and that data centres follow security procedures to protect AI systems from cyber threats.

Last push to bolster Ukraine as peace talks loom

Meanwhile, Biden is also expected to unveil new sanctions targeting Russia’s economy this week, according to a US official who spoke to Reuters, as part of measures to bolster Kyiv’s war effort against Moscow before Trump takes office.

That includes sanctions against more Chinese companies for supporting Russia.

The steps come as the Biden administration was also readying $500 million in new military aid for Ukraine on Thursday that was set to include air defence missiles, air-to-ground munitions and support equipment for F-16 fighter jets, a US official who declined to be named said.

President-elect Donald Trump’s return to the White House on January 20 has sparked hope of a diplomatic resolution to end Moscow’s invasion but also fears in Kyiv that a quick peace could come at a high price.

Advisers to Trump have floated proposals to end the Ukraine war that would effectively cede large parts of the country to Russia for the foreseeable future.

Biden aides say they want to put Ukraine in the strongest position on the battlefield to give them leverage for possible negotiations with Russia this year.

There were no immediate details on the sanctions Biden would levy in his final days but Biden aides are briefing Trump’s aides on the steps they are taking, the official said.

The official said that most of the weapons and munitions promised to Ukraine have been delivered and the remainder are on the way. Ukraine’s critical munitions stock piles are now in a healthy position, the official added.

The official said Ukraine may need security commitments, including potential NATO membership, to ward off a future Russian assault following peace negotiations. Russia launched its invasion of Ukraine in February 2022.

Meanwhile, US military officials are studying North Korean operations in the Ukraine war to assess how they might handle any conflict in Asia. Thousands of North Korean forces are believed to be supporting Russians in the war with Ukraine.

The United States is also likely to sanction more Chinese entities for their efforts to support Russia, the official said.

US Treasury Secretary Janet Yellen told Reuters last month that Washington was still seeking to reduce Russia’s oil revenue and access to foreign supplies to fuel the Ukraine war.