Microsoft’s Brad Smith warns AI export limits could give China an edge

Microsoft Vice Chair Brad Smith is urging the Trump administration to revise the Biden-era AI Diffusion Rule in a blog post, warning that restrictions on AI technology exports could weaken US leadership in the global AI race. The rule, designed to prevent adversaries from accessing advanced AI, categorizes key US allies—such as Poland, India, and Israel—as “Tier Two” countries, limiting their access to American AI infrastructure.

Smith argues that these restrictions could push friendly nations toward Chinese alternatives, repeating the mistakes of past US 5G telecommunications policy where restrictive policies and delayed decision-making allowed China’s Huawei to dominate global markets, leaving American companies struggling to catch up. He calls for simplified regulations that maintain security to help maintain American AI dominance in global markets.