Microsoft is preparing to make a bold appeal to the Trump administration, urging a significant overhaul of current restrictions on the export of advanced artificial intelligence (AI) chips.
According to a report in the Wall Street Journal (WSJ), the tech giant will argue that these curbs, intended to limit China’s access to cutting-edge technology, are having unintended consequences that could ultimately undermine US competitiveness and harm key allies.
The proposal, detailed in a Microsoft blog post scheduled for release on Thursday, will call for easing the export limits on chips used in data centers for training AI models so that they no longer apply to a group of US allies, including India, Switzerland, and Israel, the WSJ reported.
Tighter US restrictions on the exports of advanced artificial intelligence chips, such as those made by industry leader Nvidia, to Beijing have hurt the ability of American chipmakers and Big Tech companies to service one of the largest markets for semiconductors, accelerating a global race for AI infrastructure dominance.
While sanctioned telecommunications equipment maker Huawei and its domestic peers have struggled to match Nvidia in building top-end chips that could compete with the US products, Chinese startup DeepSeek’s inference-focused, low-cost models could present an opening, analysts have said.
These factors could give China an edge in developing AI solutions, as well.
WSJ reported that, according to Microsoft, the unintended consequence of expanded export restrictions would be that allies facing limited US chip supply would turn to China.
China is using proposed export restrictions to argue to other countries that it would be a better long-term partner for AI infrastructure than the US, WSJ quoted Microsoft President Brad Smith as saying in an interview.
This argument carries significant weight, particularly for nations seeking to develop their own AI capabilities without being reliant on a single source of supply.
It should be noted that Microsoft did not immediately respond to a Reuters request for comment.
Microsoft’s move underscores the complex and high-stakes nature of the global AI race.
The company believes that a more nuanced approach to export controls is needed to protect US interests, strengthen alliances, and prevent China from gaining an undue advantage in this critical technology.
By advocating for a more targeted policy, Microsoft is hoping to steer the Trump administration toward a strategy that promotes both national security and economic competitiveness.
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