Industry News

BIS Expanding Controls on Advanced AI and Computing Technology

Jan. 13, 2025
By: Marvin E. McPherson


The Bureau of Industry and Security (BIS) has introduced a new Interim Final Rule (IFR) and request for comments regarding advanced artificial intelligence (AI) and computing technology. These amendments to the EAR establish controls on advanced computing chips, certain closed AI model weights, and the Data Center Validated End User (VEU) program.

The regulation is divided into three main areas. First, enhancements to controls on advanced computing chips by requiring export authorizations for a wider set of destinations. Specially, the rule imposes a global license requirement for the export of advanced ICs classified under ECCNs 3A090.a, 4A090.a, and related .z items, and includes those items subject to the EAR’s jurisdiction through the advanced computing foreign direct product rule (FDPR). All licenses applications under this restriction will be reviewed under a presumption of denial. For destinations and end users considered low-risk for diversion or misuse, a global licensing framework will allow BIS to impose specific conditions that mitigate overall risk.

Second, the rule institutes controls on closed-weight AI model weights trained with 10*26 computational operations or more. These are weights which are essential for the development of highly capable AI models, and will require a license to certain destinations. Exceptions exist for deployments by entities headquartered in the U.S. or allied nations, as well as for open-weight models or those less advanced than the most sophisticated open models.

Third, BIS introduces stringent security conditions for storing advanced AI models in approved destinations to prevent diversion or misuse of this sensitive technology.

The rule also updates the VEU program, allowing authorized entities to build and operate data centers under specific conditions. Universal VEUs must retain a majority of their controlled chips within the U.S. and partner countries, while National VEUs can operate in specified non-embargoed locations. There are provided license exceptions however, there are limitation on the total TPP volume of exports and reexports per calendar year by all exporters and re-exporters to any individual ultimate consignee which may not exceed 26,900,000 TPP volume limit.

If you have any questions surrounding the expanded restrictions of exports, please contact any attorney at Barnes Richardson and Colburn.