Microsoft has called on the Trump administration to relax export restrictions on artificial intelligence chips. The President of Microsoft, Mr. Smith, warned that if the rule remains unchanged, it would be a gift to China’s rapidly growing artificial sector. Microsoft’s Vice Chairman and Company President Brad Smith penned a blog post titled “The Trump Administration Can Avoid a Strategic Misstep in the Global Artificial Intelligence Race.” The post highlighted a high-risk race that defines which country will power the emerging artificial intelligence economy. It was noted that a regulation enacted in the final days of the Biden administration could hinder the United States from leading in this race unless modified. The post recalled how the regulation limited the export of basic artificial intelligence components to many markets. It emphasized that this rule undermines the Trump administration’s priorities of strengthening America’s leadership in artificial intelligence and reducing the country’s approximately $1 trillion trade deficit. The post mentioned that not changing this rule strategically advantages China in spreading its artificial intelligence technology over time, similar to its rapid rise in the 5G sector a decade ago. The post indicated that supporting national security needs and maintaining essential components under control were important aspects that the rule should uphold. However, the post highlighted that the rule went beyond what was necessary by restricting American technology companies from building and expanding artificial intelligence data centers in many crucial allied countries. The post signaled that these countries, including Switzerland, Poland, Greece, Singapore, India, Indonesia, Israel, United Arab Emirates, and Saudi Arabia, were home to significant data center operations of Microsoft and other American companies. The post warned that the unexpected consequence of the rule forcing these countries to look outside the U.S. for artificial intelligence infrastructure and services could benefit China’s rapidly expanding artificial sector. It stressed the importance of exporting technological services for growth and investment, pointing out that the regulation obstructed the export of world-leading chips and technology services that should be seen as an economic opportunity.