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Microsoft (MSFT-0.28%) will publish a blog post today asking the Trump administration to loosen and simplify a planned new system that would limit the access of the latest American AI chips in most of the world, arguing the changes may push allies toward Chinese suppliers instead, the Wall Street Journal reports.
Beijing is already using the proposed rules to argue that it’s a more-reliable long-term parter than the U.S. for AI infrastructure, the newspaper said, citing Microsoft President Brad Smith. “That is not good for American business or American foreign policy.”
The changes were proposed by the Biden administration and are now being reviewed by President Donald Trump’s officials. They’re considering strengthening the restrictions while simplifying the export-control rules, the Journal said, citing people familiar with the matter.
Microsoft favors locking China out of access to the Chips, Smith said. The company has identified seven Chinese AI startups with strong potential, including DeepSeek, Smith told the Journal.
In January, the White House said the National Security Council was reviewing DeepSeek’s potential national security implications and pledged to “restore American dominance” in AI development.
Microsoft stock was up about 1.2% in Thursday morning trading. The stock is down about 3% so far this year.