In a sharp critique of the Biden administration's newly unveiled regulations on artificial intelligence (AI) chip exports, Nvidia has positioned itself as an outspoken opponent of the outgoing administration's approach, while signaling alignment with the incoming Trump administration. The sweeping rules, intended to restrict access to advanced AI technology for adversarial nations, have drawn both industry and geopolitical attention.
The Biden administration announced the "Interim Final Rule on Artificial Intelligence Diffusion" earlier this week, outlining measures to curtail the export of advanced AI chips and associated technologies. Countries such as China and Russia, which are already subject to extensive U.S. trade restrictions, face further constraints under the new framework. Meanwhile, key U.S. allies, including the United Kingdom, Japan, and Germany, are exempt from the most stringent measures.
"In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction," the White House stated. The administration emphasized the need to ensure that the development of advanced AI remains within the control of the U.S. and its allies.
Nvidia, the world's leading AI chip manufacturer with an estimated 90% market share, has been vocal in its criticism. In a company blog post, Ned Finkle, Nvidia's vice president of government affairs, described the regulations as a "regulatory morass" and argued that they would harm U.S. innovation. "Rather than mitigate any threat, the new Biden rules would only weaken America's global competitiveness, undermining the innovation that has kept the U.S. ahead," Finkle wrote.
The chipmaker accused the Biden administration of jeopardizing the global progress of AI. "This sweeping overreach would impose bureaucratic control over how America's leading semiconductors, computers, systems, and even software are designed and marketed globally," Nvidia stated. The company contrasted this approach with the policies of the first Trump administration, which it credited with fostering an environment conducive to AI innovation.
Nvidia's CEO, Jensen Huang, expressed optimism about the incoming Trump administration's potential to reshape AI policy. In a recent interview with Bloomberg Television, Huang stated, "I'd be delighted to go see him and congratulate him, and do whatever we can to make this administration succeed."
The new rules also include provisions for data center operations and AI model security. Companies like Microsoft and Google that meet stringent security standards may obtain special designations allowing them greater flexibility in chip exports. Microsoft President Brad Smith signaled the company's willingness to comply, emphasizing the importance of aligning global security and innovation needs.
However, Nvidia's critique of the Biden administration has been echoed by other industry leaders. The Semiconductor Industry Association, an influential trade group, has warned that the regulations could fragment supply chains and erode U.S. leadership in advanced AI technologies. The group urged the government to consult more extensively with the industry.
The rules, which enter a 120-day comment period, will take effect before President-elect Donald Trump assumes office. Trump's administration is expected to review and possibly revise the regulations, balancing national security concerns with economic priorities. Analysts suggest that Trump's policy approach could lean toward fostering a more open, pro-innovation framework.
The Biden administration's AI framework is the latest in a series of measures targeting China's technological ambitions. Over the past two years, the administration has introduced multiple rounds of semiconductor restrictions, aligning with broader efforts to counter China's military and industrial capabilities.
