Note4Students
From UPSC perspective, the following things are important :
Mains level: Artificial Intelligence;
Why in the News?
The U.S. Bureau of Industry and Security (BIS) created a system with different levels to control the sale and export of AI chips and technology more effectively.
What is the main objective behind one of the last orders of the Biden administration?
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How will the tiered framework for licensing and exporting Artificial Intelligence chips work?
- Three-Tier System: The new regulations categorize countries into three tiers based on their relationship with the U.S.:
- Tier 1: No restrictions for exports to 18 U.S. allies, including Australia, Canada, and Japan.
- Tier 2: Countries like China and India face caps on volumes and require Validated End User (VEU) authorization for transactions contributing to advanced AI development.
- Tier 3: Arms-embargoed countries such as North Korea and Iran have no access to advanced AI technology.
How has the tech industry responded to the move?
- Concerns Over Competitiveness: Major tech companies, including NVIDIA and Oracle, have expressed apprehension that these regulations could undermine U.S. competitiveness in the global tech landscape.
- They argue that restricting access to widely available technologies may not enhance security but instead hinder innovation.
- Call for Revisions: Industry leaders hope that the incoming administration will reconsider or withdraw these regulations, citing potential disruptions to business operations and global supply chains.
Will it affect the Indian Economy?
- Impact on AI Growth: As India invests heavily in its National AI Mission, which aims to develop infrastructure with over 10,000 GPUs through a ₹10,000 crore investment, the restrictions could pose substantial challenges in scaling up AI capabilities post-2027.
- The limits on GPU imports may deter innovation and slow down the growth of India’s tech sector.
- Potential Delays in Infrastructure Development: Major data center providers in India, such as Tata Communications and CtrlS, may face delays or downsizing of their plans due to restricted access to GPUs. This could place Indian companies at a competitive disadvantage compared to their U.S. counterparts.
- India’s Exclusion from Trusted Allies: India is not included in the list of trusted U.S. allies due to concerns over the leakage of chips to countries like Russia.
Way forward:
- Strengthen Domestic AI Capabilities: India should accelerate the development of indigenous AI technologies and chips to reduce reliance on foreign imports, invest in local R&D and foster partnerships with global tech firms for technology transfer.
- Diversify Global Alliances: India could strengthen its technological partnerships with countries outside the U.S. and explore alternative markets to source AI chips, ensuring the diversification of its supply chains to mitigate the impact of export restrictions.
Mains PYQ:
Q “The emergence of the Fourth Industrial Revolution (Digital Revolution) has initiated e-Governance as an integral part of government”. Discuss. (UPSC IAS/2020)
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