Nvidia Executive Warns Biden's Chip Bans May Have Unintended Consequences
Nvidia has voiced its concerns regarding the Biden administration's suggested export restrictions on AI chips, cautioning that these measures could negatively impact the US economy. Read Full Article at RT.com.
Nvidia, a major US chip manufacturer, has voiced significant opposition to the Biden administration's plans to restrict AI chip exports. In a statement shared with Reuters, Vice President Ned Finkle criticized the outgoing administration for implementing a “last-minute policy” that interferes with the incoming administration of President-elect Donald Trump.
Bloomberg reports that Biden's team is hastily working to finalize regulations that would limit the export of AI chips utilized in data centers by certain companies to nations viewed as adversaries, including Russia and China.
In December, Reuters revealed a Commerce Department proposal mandating stringent compliance measures for US companies, such as reporting specific details to the government and preventing Chinese access to AI chips.
Finkle expressed concern that these restrictions could “harm the US economy, set America back, and benefit adversaries.”
The Information Technology Industry Council, which includes major corporations like Amazon, Microsoft, and Meta, also opposes these trade restrictions, arguing they impose unnecessary limitations on US businesses while providing advantages to global competitors.
The Biden administration's efforts to regulate AI chips have escalated, broadening a 2023 ban on high-end chip sales to China. In December, the constraints were expanded to include 140 entities, among them semiconductor equipment manufacturers.
Trump, who instituted similar policies during his first term, is set to commence his second term on January 20.
Nvidia has called on Biden to reconsider regulations that may have lasting effects on US technology. Finkle cautioned that the policy, characterized as an “anti-China move,” could lead global markets to pivot towards alternative technologies, jeopardizing the US's leadership in AI.
In December, The Information reported that the US Commerce Department had requested Nvidia investigate how its chips were reaching China despite existing restrictions.
Although China currently lacks the advanced chipmaking technology for domestic AI production, it has been reported that universities and research institutions obtained Nvidia chips via resellers, as highlighted by Reuters in early 2024.
Nvidia maintains that it adheres to export controls and that unauthorized resale activities, including those in grey markets, negatively impact its business.
Lucas Dupont for TROIB News