Microsoft Corporation (MSFT.US) has asked Trump to simplify export restrictions on artificial intelligence chips.

According to reports, Microsoft Corporation (MSFT.US) is requesting the Trump administration to relax and simplify a new system that will restrict the sale of advanced artificial intelligence chips from the United States to most regions worldwide. Specifically, Microsoft Corporation will urge the Trump team to relax restrictions on chips used in data centers to train artificial intelligence models, making them no longer applicable to U.S. allies including India, Switzerland, and Israel. These countries are at the second level of a three-tier system supporting export controls. Microsoft Corporation pointed out that the unintended consequence of the proposed tiered system is that allies with limited access to U.S. chip supply will turn to China for the necessary technological infrastructure. Microsoft Corporation President Brad Smith, in an interview, stated that China is taking advantage of the proposed rules to show other countries that China will be a better long-term partner for artificial intelligence infrastructure than the United States. However, Smith also noted that Microsoft Corporation supports certain aspects of the rule, such as some export license requirements, and that countries at the third level of the system will be unable to access artificial intelligence chips.