Nvidia Slams Biden’s Chip Export Policies, Terms them Harmful to US Economy
Nvidia has hit out at the Biden administration for the new chip export restrictions that it plans to announce soon, Yahoo Finance has reported. Slamming the Biden policies, Nvidia claimed that by introducing last-minute riles, the current administration is trying to undermine the incoming Trump administration.
A Counterproductive Move
According to Nvidia, the efforts by White House to control technologies that already exist could be counterproductive. Nvidia is an industry leader in the production and sale of AI accelerators. Big techs need these accelerators to facilitate data-center operations and develop the latest AI models. Nvidia’s technology leverages graphic processing units that are used in gaming.
“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.
Introducing US AI chip export limits will place a cap on the sale of AI chips manufactured in America both for countries and companies. This move would put a tight limit to the amount of exports that American manufacturers export to most countries. The AI chip export curbs are part of the broader US strategy to keep China and Russia from accessing the latest technology.
“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,” Nvidia VP of Government Affairs Ned Finkle said in a statement.
Chip Curb Tiers
The new regulations on AI chip export curbs will most likely go public soon. Sources who are familiar to the regulations say they will form three tiers of chip limits that will see a group of American allies get full access to US-made semiconductors.
However, the majority of countries across the world will be slapped with restrictions, including limitations on the computing power that they can access. If the Biden administration proceeds to introduce the new rules, it will be doing so just weeks before President-elect Donald Trump takes office.
“This last-minute Biden administration policy would be a legacy that will be criticized by US industry and the global community. 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,” Finkle added.
Related News – Trump’s Import Tariffs will Have Minimal Impact on Semiconductor Exports, Taiwan Says
Nvidia vs Trump policies
Nvidia has said that it expects the Trump administration to regulate the chip industry less than the Biden administration. Speaking at the Consumer Electronics Show earlier this week, Nvidia CEO Jensen Huang said less regulation would be good for an industry that wants to move fast.
Early this week, Jensen said he was willing to meet the President elect and offer help to the incoming administration.
“I’d be delighted to go see him and congratulate him, and do whatever we can to make this administration succeed. We will give them as much insight as we can from our perspective. I am sure the administration will make the right moves,” Huang said during a Bloomberg Television interview.
Big techs have been cozying up to the President-elect in anticipation of the incoming administration. Huang is yet to pay Trump a visit. In the last two years, Nvidia has benefited immensely from surging AI spending that has turned it into the world’s most valuable chip manufacturer. Last year, Nvidia stocks tripled after gaining 239% in 2023.
Trump’s administration is expected to play a significant role in Nvidia’s future plans. The policies that the new administration puts in place will determine how fast the chip maker can achieve its global goals.