/AI1d ago

Encryption Export Controls Drove AI Researchers Offshore in 1990s

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MTS@MTSlive

SITUATION EXPLAINED: What can the history of encryption teach us about regulating AI?

We asked @kristianstout what policymakers should learn from that decade.

"In the '90s, there was a legislative effort to put export controls on encryption, on math equations, which is essentially what AI is at its root."

"What it ended up doing was driving a lot of our innovative researchers offshore. Switzerland and Israel became frontier labs for encryption for a good 10 years."

"IBM did really well... companies with really good budgets to pay compliance lawyers survived. Startups that couldn't afford that had a lot of trouble starting up."

"We drove a lot of our innovative researchers offshore, and then we ended up having to backpedal because everybody else started eating our lunch on encryption."

4:40 PM · Jun 2, 2026 · 5.4K Views
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