Non-Linear Intuition
Linear thinking is problematic in complex systems.
U.S. Scraps ‘AI Diffusion’ Rule in Revamp of Biden-Era Chip Curbs
The Biden administration’s approach to AI rulemaking had the merit of being driven by linear thinking.
Unfortunately, we don’t live in a linear world.
‘The Department of Commerce said in a statement Tuesday that it is rescinding the “AI Diffusion Rule” on the grounds that it would have stifled American innovation, saddled companies with onerous regulations and undermined diplomatic relations with dozens of countries.
‘Nvidia said that it welcomed the Trump administration’s leadership and new direction on AI policy.
‘“With the AI Diffusion Rule revoked, America will have a once-in-a-generation opportunity to lead the next industrial revolution and create high-paying U.S. jobs, build new U.S.-supplied infrastructure, and alleviate the trade deficit,” a company spokesperson told The Wall Street Journal on Wednesday.’
The US should want the world using American technology for AI. The restrictions just made it easier for our competitors to justify making the investment to replicate our progress.
‘The chipmaker’s hot streak on Wall Street started with the news that the new administration was about to suspend measures designed to slow the spread of advanced AI around the world. The so-called AI diffusion rule, announced late in the Biden presidency and due to take effect this week, would have restricted the free sale of the most sensitive AI technologies to 18 close US allies. Most other countries, consigned to “tier two” status, would have had access to only a limited supply of AI chips. Importantly, the blueprints for leading-edge models would also have been barred from export to these countries, keeping the training and operation of the most advanced AI inside a narrow circle of countries. Lifting those restrictions doesn’t just point to potential new markets for US tech, but could give US AI companies a freer hand in deciding the optimal location for their operations, perhaps even leading to an offshoring of advanced AI.’
Trump Administration Targets Europe’s Digital Laws as a Threat to Basic Rights and U.S. Business
One essential problem with EU regulation is that it is not nearly as nimble as the ways in which the platforms adapt to changing conditions. EU regulators want control and assume they know what will happen when they get it. They don’t.
That they’re doing this just as AI is supplanting search is just par for the course.
‘Much of the initiative is led by the State Department, which last week sent a request to its offices around Europe seeking “examples of government efforts to limit freedom of speech,” according to a copy reviewed by The Wall Street Journal.
‘The push centers on European Union legislation that aims to establish standards for how tech giants including Apple, Google-parent Alphabet, Amazon.com and Meta Platforms should police online content. The U.S. “is committed to shutting down the global censorship-industrial complex,” said another State Department communication seen by the Journal.
‘The clash over Europe’s digital policies comes as trans-Atlantic ties are already strained over Trump’s decision to impose tariffs and engage with Russia while cooling toward Ukraine, among other issues.‘
US AI laws risk becoming more ‘European’ than Europe’s
The states could still undo the deregulatory progress on AI coming out of Congress because reasons.
‘Most of these initiatives will fail, as happened to California’s landmark AI bill last year, but a few may well pass. Left unchecked, that could result in the US having “a web of inconsistent laws that fragment national policy, delay innovation, and create legal and technical barriers to scaling AI systems across state lines”, warns Daniel Castro, director of the Center for Data Innovation. When it comes to tech regulation, it seems, the US might end up more “European” than Europe. That fear prompted House Republicans this week to push a legislative amendment that would roll back state AI laws and impose a moratorium on any new ones for a decade. The move was condemned by state representatives and the AI researcher Gary Marcus. “A decade of deregulation isn’t a path forward. It’s an abdication of responsibility,” they wrote in an open letter.’
Neutering the States on AI Regulation
People recognize the threat.
‘This is wild. Republicans have inserted language into the budget reconciliation bill that would ban states from regulating AI in any capacity for 10 years.’
Bureaucracy Favors the Large, Ag Edition
Big companies get the “abatements.” Little guys get the shaft.
‘"That's illegal!" an Indiana lawmaker told small-time farmer Jeff Hawkins, after he testified that he processed chicken on his farm. Big politically connected farms use politics to crush competitors. It's a form of "corporate welfare," explains @johanknorberg’
Nice work, if you can get it.
How much distortion of fiscal outcomes stems from public sector unionization?
‘BREAKING: Despite the deficit he created, Gavin Newsom slips in a 16% INCREASE in spending on government bureaucrats, to reward his donors, the government unions. How is this justifiable? Isn't our nanny state bureaucracy bloated enough?’