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The SCALE Act requires the Secretary of Commerce, in coordination with the Director of National Intelligence, to establish and annually update performance metrics measuring artificial intelligence (AI) hardware capabilities in foreign adversary countries. The bill mandates that the Secretary set rolling annual export control thresholds for AI integrated circuits to entities of concern, with licenses reviewed under a presumption of denial if exports would cause adversary AI hardware to exceed 5 percent of U.S. aggregate AI hardware capacity. The bill aims to maintain U.S. and allied technological superiority in AI by controlling the flow of advanced semiconductors to foreign adversaries while providing business stability through a systematic, repeatable annual assessment process.
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