Davos 2025: US AI export controls could harm both India and US, says Andrew Ng

AI pioneer Andrew Ng at the World Economic Forum in Davos on January 20

Artificial intelligence pioneer Andrew Ng on January 20 expressed concerns over the Biden administration’s decision to place India in Tier 2 for AI chips and technology access prioritisation. He warned that such export controls could strengthen global competitors while undermining US-India ties.

Ng, who was speaking to Moneycontrol at the World Economic Forum in Davos, emphasised the need for closer collaboration between the two nations, calling them "natural allies".

The US AI Diffusion Policy and Export Controls divide the world into three groups for reasons of exports. The first, comprising 20 countries such will have unrestricted access to AI chips. In contrast, 20, including China, and Russia will have no access. For the remaining nations, including India, there will be a country-specific cap on computing power.

"I don't think that's (export curbs on chips) good for the US or India. I feel like what the export controls on chips have done for the most part is incentivise the US' competitors and adversaries to invest a ton in building their independent capability, and it's not slowed others down that much, only a little bit," Ng, the founder of DeepLearning.AI, Managing General Partner at AI Fund and Co-Founder of Coursera, said.

"I think India and the US feel like they're natural allies. I love working with many friends from India. I wish I hope for continued improvements in how the US and India collaborate," he added.

India in the coming days plans to take up this issue with the incoming Trump administration. Although the industry does not expect any impact on the ongoing Rs 10,738 crore IndiaAI mission, it anticipates long-term impacts on India's AI infrastructure ambitions if the rules remain unchanged.

While the short-term impact might be minimal, restricted access to GPUs will adversely affect India’s AI ambitions post-2027 as the country scales up its AI initiatives,” said Ashok Chandak, president of the India Electronics and Semiconductors Association (IESA). “Moreover, uncertainties around securing licences and trade negotiations could challenge India’s plans for large-scale AI hardware deployment.