Nvidia Criticizes Biden's Plan to Restrict AI Chip Exports

Photo : Reuters

Nvidia has spoken out against a new plan by the Biden administration to limit the export of AI chips. The company warned that this decision, which might happen before Biden leaves office, could hurt the U.S. economy and help the country’s enemies.

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Nvidia’s Vice President, Ned Finkle, said in a statement that Biden should wait until President-elect Trump takes office, instead of making a decision that could damage American businesses. He pointed out that such a policy would not only harm U.S. companies, but it would also allow other countries to take advantage.

The U.S. government, including the Commerce Department and the White House, did not immediately comment on the issue., the Commerce Department has plans to limit exports of advanced chips to countries like China, to stop them from using these chips to boost their military power.

that new rules could be coming soon. These rules could block certain countries from buying chips, and others might face limits on how much computer power they can get from the U.S.

Nvidia’s Finkle said that this policy, which seems aimed at China, could hurt technology around the world. It could also push other countries to find other ways to get advanced technology. He also warned that this decision could be seen as a bad legacy for the Biden administration.

The Information Technology Industry Council, which includes big companies like Amazon, Microsoft, and Meta, also said the rules could stop U.S. companies from selling their products abroad. They warned this could let other countries take over the market.

This move comes just before Donald Trump starts his second term as president on January 20. In his first term, Trump put restrictions on selling U.S. technology to China, saying it was a matter of national security.

After this news came out, Nvidia’s stock dropped by more than 1% during after-hours trading, as people worried about the new restrictions.