Annual assessment of contribution of certain artificial intelligence chips to military capabilities of the People’s Republic of China

(a) In general Not later than 180 days after the date of the enactment of this Act, and annually thereafter for a period of five years, the Director of the Defense Technology Security Administration shall submit to the Committees on Armed Services of the Senate and the House of Representatives an unclassified report, which may contain a classified annex, on the contribution of covered AI chips to the military capabilities of the People's Republic of China, including resulting threats to the artificial intelligence leadership and national security of the United States. (b) Elements Each report required under subsection (a) shall include the following: (1) An estimate of the total compute installation base of the People's Republic of China. (2) An assessment of the methods through which the People's Republic of China is acquiring covered AI chips, including remote access. (3) An evaluation of the ability of the People's Republic of China to produce indigenous artificial intelligence chips at scale to replace covered AI chips. (4) An assessment of methods the People's Republic of China uses to acquire covered AI chips through unauthorized channels, covert or illicit networks, or other forms of illegal diversion. (5) An assessment of specific military capabilities of the People's Republic of China to which covered AI chips are directly contributing. (6) An assessment of threats to the artificial intelligence leadership of the United States posed by the access by the People's Republic of China to covered AI chips, including effects on development of frontier artificial intelligence and model diffusion. (7) A net assessment of the military advantage conferred upon the People’s Liberation Army by access to covered AI chips, including a comparison of artificial intelligence capabilities without such access. (8) Policy recommendations for improving the ability of the United States Government to assess the variables described in paragraphs (1) through (7), strengthening artificial intelligence leadership of the United States, and limiting the contribution of covered AI chips to the military capabilities of the People's Republic of China. (c) Covered AI chip defined In this section, the term covered AI chip means any advanced integrated circuit, computer, or other product that— (1) is designed by or manufactured using technology originating in the United States, including items produced abroad using intellectual property, design software, or semiconductor manufacturing equipment originating in the United States; and (2) (A) is classified or classifiable under Export Control Classification Number 3A090.z, 4A090, 5A002.z, related.z Export Control Classification Numbers, or any successor classification; or (B) is an item that is functionally equivalent to an item classified or classifiable as described in subparagraph (A).