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A US Ban on Investing in Chinese AI Startups Could Escalate Under Trump
The Biden administration chose to target only companies developing frontier AI models in China. But Trump could take a more sweeping approach.
Emily Kilcrease, a senior fellow at the think tank Center for a New American Security, says that the Treasury Department’s 10 25 flops threshold will be easier for the US government to enforce than the blanket ban on all investments in AI systems with military applications. Officials also said they’re making efforts to coordinate with US allies, like the G7 countries, to introduce similar measures that would prevent Chinese AI companies from turning to VCs in Europe, Canada, or Japan for the kinds of investments prohibited in the US. The Biden administration’s tech policy toward China has been defined by, at least in principle, the idea of a “small yard, high fence,” or in other words, designating relatively narrow areas where the US government can set very strict restrictions.
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