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Nvidia slams Biden for trying to ‘preempt’ Trump with chip rules

Bloomberg
Bloomberg • 2 min read
Nvidia slams Biden for trying to ‘preempt’ Trump with chip rules
vidia is the leading seller of so-called AI accelerators, which data-center operators use to develop artificial intelligence models. Photo: Bloomberg
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Nvidia Corp criticised new chip export restrictions that are expected to be announced soon, saying the White House was trying to undercut the incoming Trump administration by imposing last-minute rules. 

The looming changes, which Bloomberg News reported on Wednesday, would cap the sale of US artificial intelligence (AI) chips on both a country and company basis — a move that would more tightly limit exports to most of the world. It’s part of a yearslong US effort to keep the latest technology away from China and Russia. 

“The extreme ‘country cap’ policy will affect mainstream computers in countries around the world, doing nothing to promote national security but rather pushing the world to alternative technologies,” Ned Finkle, Nvidia’s vice president of government affairs, said in a statement. 

TrumpNvidia is the leading seller of so-called AI accelerators, which data-center operators use to develop artificial intelligence models. But the technology is based on the graphics processing units, or GPUs, that are used in gaming and other areas.

“It makes no sense for the Biden White House to control everyday data-center computers and technology that is already in gaming PCs worldwide, disguised as an anti-China move,” Finkle said.

The regulations, which could be issued as soon as Friday, would create three tiers of chip curbs, people familiar with the matter said this week. A group of US allies would still have full access to American chips, they said. But most countries would face new limits, including restrictions on the total computing power that could go to one nation. A representative of the White House’s National Security Council declined to comment on the rules.

See also: Politicisation of semiconductor supply chain a boon and a bane for regional firms, says Chip War author

If the policy is announced, it would come less than two weeks before Donald Trump is set to be sworn in as Joe Biden’s successor. 

“This last-minute Biden administration policy would be a legacy that will be criticized by US industry and the global community,” Finkle said. “We would encourage President Biden to not preempt incoming President Trump by enacting a policy that will only harm the U.S. economy, set America back, and play into the hands of US adversaries.”

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