U.S. Imposes Global AI Chip Export Curbs; Nvidia Warns of Innovation Stifling

Jan 13, 2025, 10:57 AM

On Monday, the Biden administration announced new export controls aimed at restricting China's access to advanced artificial intelligence technology. The regulations impose global curbs on exports of AI chips produced by companies like Nvidia to about 120 countries, in an effort to limit the diffusion of AI capabilities to nations considered adversaries. Nvidia publicly criticized the new rules, stating that they would stifle innovation and undermine America's global technology leadership. "In its last days in office, the Biden administration seeks to undermine America’s leadership with a 200+ page regulatory morass, drafted in secret and without proper legislative review," Nvidia's Vice President of Government Affairs, Ned Finkle, said. "This sweeping overreach would impose immense regulatory burdens on an industry critical to our nation's future." The regulations exempt 18 U.S. allies and partners, including Japan, Britain, and the Netherlands. Authorized U.S.-based cloud providers, likely including Amazon, Google, and Microsoft, will be permitted to receive unlimited quantities of AI chips to build data centers, provided that at least half of their controlled AI chips remain inside the United States. The Semiconductor Industry Association also reacted to the upcoming export controls, expressing concerns about the potential impact on the AI landscape and the semiconductor industry. The U.S. aims to block backdoors in other countries that Beijing could use to access technology, imposing some of its strongest measures yet to limit Chinese advances in AI.