Microsoft is pushing the Trump administration to loosen and simplify a new system that would restrict the sales of cutting-edge U.S. artificial-intelligence chips to much of the world. From a report: In a blog post that is scheduled to be released Thursday, Microsoft will call for Trump's team to ease the limits on chips that can be used in data centers for training AI models so they no longer apply to a group of U.S. allies including India, Switzerland and Israel [non-paywalled source], company officials said. Those countries are in the second tier of a three-tier system that underpins the export controls.

Microsoft says the unintended consequence of that proposed system would be that allies facing limited U.S. chip supply would turn to China to get the tech infrastructure they need. China is using the proposed rule to argue to other countries that it would be a better long-term partner for AI infrastructure than the U.S., Microsoft President Brad Smith said in an interview. "Their message is these countries can't rely on the U.S., but China is willing to provide what they need," he said. "That is not good for American business or American foreign policy."

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