Nvidia warns Biden’s AI chip restrictions could undermine U.S. tech dominance
Nvidia NVDA.O on Monday criticised a new effort by the Biden administration to tighten Washington’s grip on artificial intelligence chip flows around the world, saying the regulation would jeopardise current U.S. leadership in AI.
The new rule, which is expected to be published as soon as Monday, “threatens to derail innovation and economic growth worldwide,” and would “undermine America’s leadership,” Nvidia Vice President of Government Affairs Ned Finkle said in a statement.
According to a Bloomberg report last Wednesday, the Biden administration is expected to announce stricter export controls in its final days. These regulations could introduce three tiers of chip restrictions, with a top group of U.S. allies retaining full access to U.S. semiconductor technology, while most other countries would face new limitations.
Finkle argued America’s leading role in AI would be hurt because the rule “would impose bureaucratic control over how America’s leading semiconductors, computers, systems, and even software are designed and marketed globally.”
The Santa Clara, California-based company also said the rule would not improve U.S. national security and it would control technology that is already widely available in gaming and consumer hardware.
“Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead,” Finkle said.
Early Monday, Nvidia’s stock was falling in response to the export controls targeting China, with the company expressing concerns that even more restrictive measures could be implemented.
The proposed rules have already aroused criticism from the chip industry, with the Semiconductor Industry Association suggesting new policies should be designed by Trump’s incoming administration.
Accordingly, Nvidia hopes Trump will intervene to prevent the implementation of stricter chip-export restrictions.
