Nvidia criticizes Biden’s AI chip restrictions while eyeing favor with Trump

Nvidia has openly criticized the Biden administration's newly announced AI framework, while indicating potential support with the incoming Trump administration.

The framework, titled the “Interim Final Rule on Artificial Intelligence Diffusion,” aims to restrict the export of advanced AI chips to countries outside the US and its 18 allied nations.

The rules are designed to prevent adversaries like China and Russia from acquiring AI technologies that could threaten national security. 

Nvidia, which controls an estimated 90% of the AI chip market, is poised to be the most affected by these restrictions. The company argues that these new limitations could stifle global innovation and economic growth, contradicting previous efforts to foster a thriving AI sector.

In a statement, Nvidia criticized the Biden administration for introducing over 200 pages of regulations without adequate legislative review. The company contends that these measures would impose excessive bureaucratic control over the design and distribution of AI-related technologies, potentially weakening America’s global competitiveness.

“While cloaked in the guise of an ‘anti-China’ measure, these rules would do nothing to enhance US security. The new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware,” Ned Finkle, vice president of government affairs at Nvidia, stated.

“As the first Trump Administration demonstrated, America wins through innovation, competition and by sharing our technologies with the world — not by retreating behind a wall of government overreach. 

“We look forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond.”

The new regulations also impose security standards on AI model “weights”—the unique parameters that guide AI predictions—and offer a framework for companies like Microsoft and Google to obtain special government accreditation. This accreditation would allow these companies to trade AI chips with fewer restrictions, provided they adhere to stringent security protocols.

Microsoft has indicated its willingness to comply with the new rules, with President Brad Smith affirming the company’s commitment to meeting the high-security standards while continuing to serve global customers.

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