Netanyahu asked U.S. for AI chip export waiver
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Israeli Prime Minister Benjamin Netanyahu asked U.S. Secretary of Commerce nominee Howard Lutnick during their meeting in Washington on Friday to give Israel a waiver that would exempt it from proposed regulatory controls on advanced AI chips, two sources with knowledge of the issue said.
Why it matters: Advanced computing chips are crucial for Israel's tech and defense industries to develop AI systems.
- Israel has been extremely concerned by the Biden administration's decision to put it on a list of 120 countries whose access to advanced AI chips exported from the U.S. could be limited under a framework proposed in January.
- While the immediate effect is mostly on Israel's reputation, the export controls could have a negative impact on the Israeli tech industry in the future.
- The Biden administration's restrictions won't take effect for three months and Israel hopes Trump will change the export control framework or upgrade Israel's status, an Israeli official said.
Behind the scenes: A U.S. source with knowledge of the meeting said Lutnick discussed the issue with Netanyahu but made no promises.
- A senior Trump administration official expressed skepticism that the U.S. will grant Netanyahu's request in the near term.
- "We can't start making exceptions right now because this is national security we're talking about and it's of utmost importance," the official said.
The big picture: Under the Biden administration's framework about 20 allied countries, including Japan, Canada, and the U.K., would be able to import chips from the U.S. without restrictions.
- Arms-embargoed countries, including China and Russia, were already unable to import advanced chips from U.S. companies. The new export controls are aimed at preventing China from gaining access to chips via third-party countries.
- Another 120 countries, including Israel, Switzerland and Portugal, would face caps on the number of chips they could import from the U.S. and be subject to license requirements.
- The sweeping controls have drawn criticism from some industry players who argue they will undermine U.S. competitiveness.
Go deeper:
Biden administration unveils global AI export controls aimed at China
Biden ratchets up AI chip war with China
Scoop: Advanced AI chips cleared for export to UAE under Microsoft deal
