The US government has announced new restrictions on exporting AI chips and technology, seeking to safeguard its dominance in AI development while limiting China’s access to advanced computing capabilities. The regulations, unveiled during the final days of President Biden’s administration, impose strict caps on AI chip exports to most countries, with exemptions for close allies such as Japan, the UK, and South Korea. Countries like China, Russia, Iran, and North Korea remain barred from accessing this critical technology.
Commerce Secretary Gina Raimondo emphasised the importance of maintaining US leadership in AI to support national security and economic interests. The regulations, which build on a four-year effort to block China’s acquisition of advanced chips, also close existing loopholes and enforce tighter controls. New limits target advanced graphics processing units (GPUs), essential for training AI models, and introduce worldwide licensing requirements for cutting-edge AI technologies. Major cloud providers like Microsoft and Amazon will face new authorisation processes to establish data centres globally under stringent conditions.
Industry leaders, including Nvidia, have expressed concerns over the broad scope of the rules, warning of potential harm to innovation and market dynamics. Nvidia called the restrictions an “overreach,” while Oracle cautioned that the measures could inadvertently benefit Chinese competitors. Despite this criticism, US officials argue the rules are vital for maintaining a competitive edge, given AI’s transformative potential in sectors like healthcare, cybersecurity, and defence. China’s Commerce Ministry condemned the move, vowing to protect its interests in response to the escalating technology standoff.
British Prime Minister Keir Starmer has announced an ambitious plan to position the UK as a global leader in AI. In a speech on Monday, Starmer outlined proposals to establish specialised zones for data centres and incentivise technology-focused education, aiming to boost economic growth and innovation. According to the government, fully adopting AI could increase productivity by 1.5% annually, adding £47 billion ($57 billion) to the economy each year over the next decade.
Central to the plan is the adoption of recommendations from the “AI Opportunities Action Plan,” authored by venture capitalist Matt Clifford. Measures include fast-tracking planning permissions for data centres and ensuring energy connections, with the first such centre to be built in Culham, Oxfordshire. Starmer emphasised the potential for AI to create jobs, attract investment, and improve lives by streamlining processes like planning consultations and reducing administrative burdens for teachers.
The UK, currently the third-largest AI market behind the US and China, faces stiff global competition in establishing itself as an AI hub. While Starmer pledged swift action to maintain competitiveness, challenges persist. The Labour government’s recent high-tax budget has dampened some business confidence, and the Bank of England reported stagnation in economic growth last quarter. However, Starmer remains optimistic, declaring, “We must move fast and take action.”
By integrating AI into its economic strategy, the UK hopes to capitalise on technological advancements, balancing innovation with regulatory oversight in an increasingly competitive global landscape.
Taiwan is optimistic about the limited impact of US President-elect Donald Trump’s proposed tariffs on semiconductor exports, citing the nation’s technological edge in the global chip industry. On Friday, economy Minister Kuo Jyh-huei emphasised that Taiwan’s advanced semiconductor processes, led by industry giant TSMC, maintain an irreplaceable position in the supply chain for major companies like Apple and Nvidia.
Despite Trump’s pledges for sweeping tariffs—10% on global imports and up to 60% on Chinese goods—Taiwanese policymakers acknowledged potential challenges for the island’s export-driven economy. However, Kuo reassured that the chip sector’s resilience lies in its technological leadership, which mitigates the risk of significant disruption.
To adapt to the shifting trade landscape, Taiwan plans to help companies relocate parts of their supply chains to the United States if necessary. The island also aims to deepen cooperation in industries like aerospace and advanced technology by fostering ties with US and Japanese firms. This includes establishing a dedicated office in Japan to bolster collaboration on AI and drone development, Kuo said.
Taiwan’s proactive approach reflects its strategic positioning in global trade and its commitment to maintaining robust economic ties amid evolving US policies.
Google is merging additional AI teams into its DeepMind division to speed up innovation in AI technologies. Logan Kilpatrick, head of product for Google’s AI Studio, confirmed that both the AI Studio team and the Gemini API developers would now operate under DeepMind.
DeepMind, created in 2023 from the merger of Google Brain and DeepMind, has played a central role in Google’s AI advancements, including the Gemini model series. Kilpatrick stated the restructuring would strengthen collaboration and accelerate progress in making research tools available to developers.
Engineer Jaana Dogan highlighted that the move would make DeepMind’s tools more publicly accessible, with better APIs, open-source contributions, and enhanced developer resources planned. This shift follows earlier integrations of the Gemini chatbot and responsible AI teams into DeepMind as part of Google’s ongoing strategy.
CEO Sundar Pichai previously described Gemini as gaining strong momentum while stressing the need to move faster in 2025 to close competitive gaps. Scaling Gemini for consumers will be a primary focus next year.
Nvidia has voiced strong opposition to a reported plan by the Biden administration to impose new restrictions on the export of AI chips, urging the outgoing president to avoid making a decision that could impact the incoming Trump administration. The company warned that such measures would harm the US economy, hinder innovation, and benefit adversaries like China. Nvidia’s Vice President, Ned Finkle, called the policy a “last-minute” move that would leave a legacy of criticism from both US industry and the global community.
The proposed restrictions, as reported by Bloomberg, aim to limit AI chip exports to certain countries, particularly targeting China to prevent the enhancement of its military capabilities. While some nations would face outright bans, the rules would also cap the computing power that can be exported to others. The Biden administration has yet to confirm the details, and requests for comment from the White House and the Commerce Department went unanswered.
Industry groups, including the Information Technology Industry Council, which represents major tech firms like Amazon, Microsoft, and Meta, have expressed concern about the policy. They argue that it would impose arbitrary limitations on US companies’ global competitiveness and risk ceding market leadership to foreign rivals. Nvidia warned that these restrictions could push international markets toward alternative technologies, undermining the US technology sector.
President-elect Donald Trump, who begins his second term on January 20, previously enacted technology export restrictions to China during his first term, citing national security concerns. Nvidia’s statement reflects apprehension about the continuity of US policy on AI chip exports under the new administration.
Dragos and Singapore’s Digital and Intelligence Service (DIS) are collaborating to enhance cybersecurity capabilities through a strategic partnership focusing on planning, training, and exchanging information about cyber threats. The agreement, announced during the Critical Infrastructure Defence Exercise (CIDeX) 2024, aims to fortify the defence of Singapore’s critical infrastructure and increase its resilience to cyber attacks.
The partnership builds on Dragos’s long-standing collaboration with Singapore, including a previous agreement in August 2023 with the Cyber Security Agency (CSA) to improve operational technology (OT) cybersecurity. DIS emphasised the importance of expanding cybersecurity partnerships across sectors, while Dragos commended Singapore’s proactive approach to cybersecurity as an example for other nations to follow.
That partnership underscores the shared commitment of both parties to secure critical infrastructure amid an evolving cyber threat landscape. By leveraging their expertise, Dragos and DIS aim to provide Singapore with the necessary tools and knowledge to navigate emerging challenges, ensuring the protection of its infrastructure and citizens.
Elon Musk has echoed concerns from AI researchers that the industry is running out of new, real-world data to train advanced models. Speaking during a livestream with Stagwell’s Mark Penn, Musk noted that AI systems have already processed most of the available human knowledge. He described this data plateau as having been reached last year.
To address the issue, AI developers are increasingly turning to synthetic data, information generated by the AI itself, to continue training models. Musk argued that self-generated data will allow AI systems to improve through self-learning, with major players like Microsoft, Google, and Meta already incorporating this approach in their AI models.
While synthetic data offers cost-saving advantages, it also poses risks. Some experts warn it could cause “model collapse,” reducing creativity and reinforcing biases if the AI reproduces flawed patterns from earlier training data. As the AI sector pivots towards self-generated training material, the challenge lies in balancing innovation with reliability.
Malaysia plans to leverage its strategic location and rising investments to establish itself as a hub for energy and semiconductor manufacturing, Prime Minister Anwar Ibrahim and Economy Minister Rafizi Ramli announced Thursday. The country is benefiting from political stability, economic growth, and a strong currency, distinguishing it from regional peers facing uncertainty.
Prime Minister Anwar highlighted Malaysia’s economic rebound last year, driven by significant investments in renewable energy and AI infrastructure. He pointed to a stable ringgit, low inflation, and a leading stock market performance in Southeast Asia. ‘In 2025, we aim to capitalise on our geographical position as a conduit for electricity, talent, and supply chain diversification,’ Anwar said at an economic forum.
Economy Minister Rafizi Ramli revealed plans to produce homegrown graphics processing unit (GPU) chips in response to growing AI and data centre demands. Malaysia, which already accounts for 13% of global semiconductor testing and packaging, is targeting over $100 billion in investments for the sector. The country has attracted major firms like Intel and Infineon, as well as digital investments from Google, further boosting its economy and solidifying its role as a key player in the global semiconductor supply chain.
The Dutch government announced a deal with Nvidia on Thursday to provide hardware and expertise for a potential AI supercomputing facility. The planned facility is part of the Netherlands‘ broader strategy to bolster AI research and contribute to EU efforts to strengthen Europe’s digital economy.
Last year, the Netherlands allocated €204.5 million ($210 million) for AI investments, with additional funding expected from European subsidies. Economy Minister Dirk Beljaarts hailed the Nvidia agreement as a major step toward realising the project, emphasising the intense global competition for advanced AI technologies.
‘This deal brings building a Dutch AI facility a lot closer,’ Beljaarts said after meeting Nvidia representatives in Silicon Valley, although he refrained from disclosing specific details of the agreement.
Emirati billionaire Hussain Sajwani plans to invest $20 billion in the growing US data centre sector over the coming years. The announcement was made alongside US President-elect Donald Trump at his Mar-a-Lago residence in Florida, where Sajwani, chairman of Dubai-based developer DAMAC, expressed the potential for even larger investments depending on market conditions.
Sajwani’s company owns the only Trump-branded golf course in the Middle East, located in Dubai. The two have a long-standing relationship, with Sajwani celebrating New Year with Trump in Florida. Trump’s focus on economic growth aligns with this announcement, though previous investment promises, such as the Foxconn factory in Wisconsin, fell short of expectations.
A surge in AI technology, particularly since the introduction of OpenAI’s ChatGPT in 2022, has driven significant investment in data infrastructure. Microsoft recently revealed plans to spend $80 billion this fiscal year on expanding its AI capacity. SoftBank’s CEO Masayoshi Son also committed $100 billion in US investments, further highlighting the sector’s momentum.
US restrictions on advanced AI chip exports to China have intensified under the Biden administration. Trump’s recent appointments of China hard-liners in key economic and diplomatic roles signal a continued focus on limiting China’s access to cutting-edge technologies.
