Biden to Restrict Nvidia, AMD AI Data Center Chip Exports with Three-Tier System

Jan 9, 2025, 06:18 AM

The Biden administration is preparing to implement additional restrictions on the export of artificial intelligence (AI) chips used in data centers from companies such as Nvidia Corp. and Advanced Micro Devices Inc. (AMD), with the aim of preventing advanced technologies from reaching China and Russia. These measures, set to be announced as early as Friday, would introduce a three-tier system of trade restrictions. The top tier would allow a select group of U.S. allies, including Germany, the Netherlands, Japan, South Korea, and Taiwan, unrestricted access to American chips. Adversaries would be blocked from importing these semiconductors, while the majority of the world would face limits on the total computing power that can be imported. Companies in countries with the most restrictive limits could bypass these by agreeing to U.S. security and human rights standards. Nvidia has expressed opposition to these new restrictions, stating that they would not reduce the risk of misuse but would threaten U.S. economic growth and leadership. Following the announcement, Nvidia's stock fell over 1% and AMD's stock also declined.