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Nvidia accuses Biden administration of rushing policy to undercut Trump

In this post:

  • Nvidia Corp. accuses the White House of rushing last-minute US chip export rules to damage Trump
  • The company’s VP says the extreme ‘country cap’ policy will do nothing to promote national security.
  • He says the technology behind those chips is actually derived from GPUs that were initially designed for gaming and other uses.

Nvidia Corp. accuses the White House of rushing last-minute US chip export rules to damage Trump, criticizing the soon-expected new export restrictions for AI chips. 

According to a Bloomberg report, Ned Finkel, Nvidia’s vice president of government affairs, said in a statement, “The extreme ‘country cap’ policy will affect mainstream computers in countries around the world, doing nothing to promote national security” but will instead encourage global markets to leverage alternative technologies.

The soon-to-be-announced rules stipulate that US-made artificial intelligence chips will be sold only under a strict limit. These restrictions, applied to both countries and individual companies, would shrink exports across much of the globe. The restrictions are part of a much longer effort by the United States to get China and Russia to stop accessing advanced technology.

Nvidia pushes back on AI Chip Restrictions, cites misguided policy

According to the top seller of AI accelerators used by data centers to build cutting-edge AI models, the technology behind those chips is actually derived from GPUs that were initially designed for gaming and other uses.

“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 added.

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Sources familiar with the matter say the US is preparing to enforce new chip export restrictions as soon as Friday, splitting products into three tiers.

Under the plan, American semiconductors would be fully available to US allies. However, most other countries would be restricted in new ways, including caps on the total amount of computing power that could be shipped to a country in any given year.

The White House’s National Security Council declined to comment on the pending rules announcement.

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