Nvidia Slams Biden's 'AI Diffusion' Rule as 'Unprecedented' Threat to Innovation

Jan 13, 2025, 11:13 AM

Nvidia has criticized the Biden administration's new 'AI Diffusion' rule, calling it 'unprecedented and misguided' and warning that it could 'threaten to derail innovation and economic growth worldwide' and 'undermine America's leadership' in artificial intelligence. Ned Finkle, Nvidia's Vice President of Government Affairs, said the 200+ page regulatory morass, drafted in secret and without proper legislative review, seeks to restrict access to mainstream computing applications. The new export controls aim to limit the global flow of advanced AI chips, particularly targeting China, to protect national security. The regulations impose global curbs on the export of Nvidia's AI chips, with exemptions granted to 18 U.S. allies and partners, including Japan, Britain, and the Netherlands. Authorized U.S.-based cloud providers, such as Amazon, Google, and Microsoft, are permitted to receive unlimited quantities of AI chips to build data centers but must keep at least half of their controlled AI chips within the United States. The Biden administration's move comes in its final days before President-elect Donald Trump takes office, leaving decisions on the implementation of these restrictions to the incoming administration.