Nvidia Challenges Biden's AI Chip Export Restrictions Proposal

Image Credit: Reuters

Nvidia criticized a reported plan by the Biden administration on Thursday to impose new restrictions on AI chip exports, urging the outgoing president not to enact a policy that could harm the U.S. economy.

Nvidia Vice President Ned Finkle stated that such a move would be a setback for the U.S. and could play into the hands of adversarial nations. The U.S. Commerce Department and the White House did not respond to requests for comment.

According to Reuters, the Commerce Department plans to approve global AI chip exports while preventing bad actors from obtaining them, with a key focus on limiting AI's potential to enhance China's military power.

Bloomberg reported that the new export regulations could soon be announced, restricting U.S. chip exports to certain countries while imposing caps on the total computing power each nation can receive.

Finkle argued that the policy, disguised as an anti-China measure, would impact computers worldwide and push nations toward alternative technologies. He warned that it would become a controversial legacy for the Biden administration and criticized it for negatively affecting U.S. industry and global markets.

The Information Technology Industry Council, representing major tech companies like Amazon, Microsoft, and Meta, also expressed concern, claiming the policy would restrict U.S. firms' ability to sell computing systems internationally and benefit foreign competitors.

Nvidia shares dropped by more than 1% in after-hours trading following the Bloomberg report.

 

 

 

 

 

 

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