Nvidia Condemns Biden's Reported AI Chip Export Restrictions: Reuters

Nvidia has criticized a reported Biden administration plan to restrict exports of artificial intelligence chips, arguing that the outgoing president should not enact such a policy before President-elect Donald Trump takes office.

In an emailed statement to Reuters, Nvidia Vice President Ned Finkle warned that the restrictions would harm the US economy and play into the hands of US adversaries. "We would encourage President Biden to not preempt incoming President Trump by enacting a policy that will only harm the U.S. economy, set America back, and play into the hands of U.S. adversaries," Finkle said.

The Commerce Department's reported plan, first reported by Reuters last month, aims to control global AI chip exports while preventing "bad actors" from accessing them. A key objective is to prevent China from using AI to enhance its military capabilities. Bloomberg News reported Thursday that new export regulations could be announced soon, effectively blocking a group of US adversaries from importing these chips. The majority of the world would also face limits on the total computing power that can be exported to a single country.

Finkle described the reported policy as an "anti-China move" and warned that the extreme country cap would affect computers worldwide and encourage alternative technologies. "This last-minute Biden administration policy would be a legacy that will be criticized by U.S. industry and the global community," Finkle stated.

The Information Technology Industry Council (ITIC), representing companies like Amazon, Microsoft, and Meta, has also expressed concerns. The ITIC argues that the rule would impose arbitrary constraints on US companies' ability to sell computing systems overseas, potentially ceding the global market to competitors.

President-elect Trump, who previously imposed restrictions on technology sales to China citing national security concerns, is set to begin his second term on January 20. Nvidia shares fell over 1% in after-hours trading following the Bloomberg report.