Nvidia opposes Biden's AI chip export plan: report

Nvidia has voiced strong opposition to a reported plan by the Biden administration to impose new restrictions on AI chip exports, as per a recent Reuters report. The leading AI chip company has called the policy potentially harmful to the US economy, urging the outgoing president to leave such decisions to the incoming Trump administration, states the report.

"We would encourage President Biden to not preempt incoming President Trump by enacting a policy that will only harm the US economy, set America back, and play into the hands of US adversaries," said Nvidia Vice President Ned Finkle in an emailed statement on Thursday, as per Reuters.

The statement comes after Bloomberg reported that the Commerce Department is considering regulations that would block certain nations from importing high-performance AI chips while capping the computing power allowed for other countries. The measures aim to prevent AI technologies from bolstering military capabilities in nations like China, adds the report.

Finkle described the policy as an "anti-China move" in appearance but warned it could disrupt global computing systems and drive innovation away from US-based technologies. "This last-minute Biden administration policy would be a legacy that will be criticised by U.S. industry and the global community," he said, as stated by Reuters.

The Information Technology Industry Council, representing companies such as Amazon, Microsoft, and Meta, also expressed concerns, stating that the proposed rule could harm US companies' competitiveness and hand an advantage to international rivals.

President-elect Donald Trump, who begins his second term on January 20, previously implemented restrictions on US technology sales to China during his first term, citing national security risks. Nvidia's criticism of the current administration's reported plans highlights industry concerns about how new export limits could reshape the AI chip market, suggests the report.