• Nvidia criticized the Biden administration's reported plan for AI chip export restrictions, calling it a policy that harms the U.S. economy and benefits adversaries.
  • The proposed regulations aim to block adversarial nations like China from using AI chips to enhance military capabilities.

Nvidia has expressed strong opposition to a reported plan by the Biden administration to introduce new restrictions on AI chip exports. The company criticized the timing of the proposed policy, urging Joe Biden not to "preempt incoming President Trump" with last-minute regulations.

"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," said Nvidia Vice President Ned Finkle in a statement emailed to the press.

The proposed restrictions aim to limit AI chip exports, particularly to prevent adversarial nations like China from using AI technology to enhance military capabilities. According to a Bloomberg News report, the regulations could effectively block a group of U.S. adversaries from importing high-end AI chips while imposing stringent limits on computing power exports to other countries.

Finkle criticized the policy, describing it as an "anti-China move" that could negatively impact global computing systems and push industries toward alternative technologies.

"This last-minute Biden administration policy would be a legacy that will be criticized by U.S. industry and the global community," he warned.

Industry groups, including the Information Technology Industry Council, have echoed concerns about the restrictions. Representing companies like Amazon, Microsoft, and Meta, the council argued that the policy imposes arbitrary constraints on U.S. companies, potentially allowing competitors to dominate the global market.

The Biden administration and the U.S. Commerce Department, responsible for drafting the policy, have not responded to requests for comment. Nvidia shares fell over 1% during extended trading following the Bloomberg report.

The restrictions come just weeks before President-elect Donald Trump, known for his previous tech-related export limitations targeting China, begins his second term on January 20.

Edited by Harshajit Sarmah