Biden's Last-Minute Executive Order on AI, Investment Concerns & Much More - AI Policy Brief #1

January 21, 2025 - AI Policy Brief

Hi there,

In this edition of the Silicon Brief, we're diving into the latest developments in AI chips and data centers. NVIDIA has announced a new line of AI chips designed to enhance data processing capabilities in data centers, aiming to improve efficiency and reduce energy consumption. Meanwhile, Intel is expanding its data center operations with a focus on integrating AI technologies to support growing demands in cloud computing.

Additionally, Google is making strides with its AI-driven data center management systems, which are said to optimize performance and sustainability. These advancements highlight the ongoing evolution in AI infrastructure, as companies continue to innovate to meet the increasing needs of the digital age.

International Policy

Biden Administration has set new rules on exporting A.I. technology, targeting countries like China and Russia to address national security concerns. OpenAI has warned that the US could lose $175 billion in AI investment to China, urging a national strategy to maintain leadership in the field. The U.S. has imposed new restrictions on AI technology exports, but Taiwan remains exempt, highlighting its regulatory alignment and partnership with the U.S. The US government has added Zhipu, an AI startup backed by Tencent, to its trade restrictions blacklist due to national security concerns, limiting US suppliers from selling to the company without a license.

Regulatory Actions

Microsoft's $13 billion investment in OpenAI is under scrutiny by the Federal Trade Commission due to antitrust concerns. The UK's Competition and Markets Authority is investigating Google for its search and AI practices. The FTC has referred a complaint against Snap Inc. to the DOJ regarding its AI chatbot My AI. The U.S. Artificial Intelligence Safety Institute is seeking public comments on its draft document NIST AI 800-1. The US DOJ has restricted data transfers to certain countries. The U.S. Commerce Department has issued new AI and open data guidelines. Kenya plans to limit foreign use of local data for AI training.

Defense & Security

Air Force Secretary Frank Kendall emphasized AI and cyber resilience for future competitiveness against China by 2050. The UK-led Joint Expeditionary Force deployed Nordic Warden to monitor undersea threats after Estlink2 cable damage. The U.S. Indo-Pacific Command will test AI tools for battlefield decision-making with corporate partners and the Pentagon. The Pentagon reports AI is enhancing military efficiency in threat identification and response.

Innovation & Investment

OpenAI has released an Economic Blueprint proposing policies to enhance AI benefits in the US, focusing on equitable access, national security, and economic growth. LetsData has secured $1.6 million in funding to advance its technology for detecting information operations and synthetic identities. Holly, an AI-driven platform for government hiring, has raised $2.2 million in a pre-seed funding round led by J2 Ventures.

AI Safety

OpenAI has updated its policy document, removing the phrase about 'politically unbiased' AI. An AI assistant in the Boox e-reader, powered by ByteDance's Doubao language model, has been criticized for promoting Chinese government propaganda. The University of Hawaiʻi at Mānoa has been awarded $750,000 by the U.S. Department of Transportation for an AI project focused on improving traffic safety at intersections.

Subscribe to AI Policy Brief

Weekly report on AI regulations, safety standards, government policies, and compliance requirements worldwide.