Nvidia Slams Biden's Country-Specific Chip Rules: 'Legacy That Will Be Criticized'

Nvidia Corp. NVDA has expressed strong disapproval of the Biden administration’s anticipated chip export restrictions. The proposed regulations aim to limit the global sale of U.S. artificial intelligence chips.

What Happened: The new rules, expected to be announced as soon as Friday, are designed to curb chip exports to most nations, with a focus on preventing advanced technology from reaching China and Russia. Ned Finkle, Nvidia's vice president of government affairs, criticized the policy, arguing it would not bolster national security but instead push the world towards alternative technologies, Bloomberg reported on Wednesday.

Finkle contended that the policy, which includes a “country cap,” would affect mainstream computers globally. He highlighted that the technology in question is already common in gaming PCs and everyday data-center computers, questioning the logic behind the restrictions.

The proposed regulations would create three tiers of chip curbs, allowing some U.S. allies full access to American chips. However, most countries would face new limitations, including caps on computing power.

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

Why It Matters: The Biden administration’s proposed export restrictions are part of a broader strategy to concentrate artificial intelligence technology development with allies and on Washington's terms. Nvidia and other semiconductor companies are preparing for potential impacts from these restrictions.

The Biden government is considering a fresh sanction on the export of AI chips used in data centers, both on a country and company basis, before the transition to the Republican government led by Donald Trump on Jan. 20. The proposed rules could enact three tiers of chip curbs, affecting the global semiconductor market and potentially altering the competitive landscape.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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