Official announcement from the U.S. government or Department of Commerce

Biden to Restrict AI Chip Exports to China, Russia, Targeting Nvidia and AMD with Three Tiers of Trade Limits

Jan 8, 2025, 09:49 PM

The Biden administration is set to introduce new restrictions on the export of artificial intelligence (AI) chips, targeting companies like Nvidia and AMD, in a move aimed at limiting access to these technologies by countries such as China and Russia. These restrictions, expected to be announced as early as Friday, will categorize countries into three tiers: allies with unfettered access, adversaries blocked from imports, and the rest of the world facing limits on total computing power. The policy aims to concentrate AI development among friendly nations and encourage global businesses to align with U.S. standards. The tech industry, including groups like the Information Technology Industry Council (ITI), has urged the administration to reconsider, warning that such measures could undermine U.S. leadership in AI and impact global market share. Nvidia has expressed concerns that the policy shift could threaten economic growth and U.S. technological leadership without reducing the risk of misuse. Following the announcement, Nvidia's stock fell, and AMD's stock also experienced declines. The new rules will utilize a 'validated end user' (VEU) designation to create trusted entities for AI development and deployment.