NVIDIA slams Biden’s country-specific chip rules: ‘Legacy of criticism’ – NVIDIA (NASDAQ:NVDA)

NVIDIA Corporation NVDA expressed strong dissatisfaction with the Biden administration’s expected chip export restrictions. Proposed regulations aim to limit global sales of U.S. artificial intelligence chips.

what happened: The new rules, expected to be announced as early as Friday, aim to restrict chip exports to most countries, with a focus on preventing advanced technology from reaching China and Russia. Ned FinkelNvidia’s vice president of government affairs criticized the policy, saying it would not strengthen national security but would instead push the world toward alternative technologies, Bloomberg reported Wednesday.

Finkel believes that this policy, which includes “country caps,” will affect mainstream computers around the world. He emphasized that the technology is already common in gaming PCs and everyday data center computers, and questioned the logic behind these restrictions.

The proposed regulations would establish Tier 3 chip restrictions, allowing some U.S. allies to have full access to U.S. chips. However, most countries will face new restrictions, including caps on computing power.

“The Biden administration’s last-minute policies will be a legacy of criticism from U.S. industry and the international community,” Finkel said.

why it’s important: The Biden administration’s proposed export restrictions are part of a broader strategy to focus development of artificial intelligence technology with allies and on Washington’s terms. Nvidia and other semiconductor companies are preparing for the potential impact of these restrictions.

Ahead of the transition to a Republican administration, the Biden administration is considering new sanctions on the export of artificial intelligence chips used in data centers, either on a country or company basis. Donald Trump January 20th.

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Disclaimer: This content was produced in part with help from Benzinga Neuro, and is reviewed and published by Benzinga editors.

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