Nvidia blasts Biden admin over ‘misguided’ AI chip restrictions, praises Trump
Nvidia blasted the Biden administration for implementing “misguided” rules limiting shipments of AI computer chips – and praised incoming President-elect Donald Trump – in a rare public broadside on Monday.
The chip giant — which has ridden the AI wave to become the most valuable company in the world — took issue with last-minute rules unveiled Monday that cap the number of advanced chips most nations can buy from US firms.
The new policy would also tighten requirements on exporting AI-related data for companies that create closed-source models, such as Google and OpenAI.
“In its last days in office, the Biden Administration seeks to undermine America’s leadership with a 200+ page regulatory morass, drafted in secret and without proper legislative review,” Ned Finkle, Nvidia’s vice president of external affairs, said.
“This sweeping overreach would impose bureaucratic control over how America’s leading semiconductors, computers, systems and even software are designed and marketed globally,” Finkle added.
Nvidia shares plunged more than 3% after the Biden administration’s announcement. The company is the biggest supplier of the advanced graphics processing units, or GPUs, that power the data centers tied to AI models.
Finkle said Trump “laid the foundation for America’s current strength and success in AI” during his first term in office and that the Biden administration’s rules could erode that advantage.
“As the First Trump Administration demonstrated, America wins through innovation, competition and by sharing our technologies with the world — not by retreating behind a wall of government overreach,” Finkle said.
“We look forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond.”
Representatives for Trump’s transition team did not immediately return requests for comment.
The rules are scheduled to take effect after a 120-day comment period. That means the Trump administration should have broad leeway over how the measures are implemented and whether any changes are necessary.
Officials said the rules are necessary to protect US national security and prevent adversaries like China and North Korea from gaining access to advanced technology. But critics, including Nvidia, say they are too restrictive and could hurt innovation.
Foreign adversaries like China, Russia, North Korea and Iran already faced export bans on advanced AI chips. Under the new rule, more than 120 nations – including Israel, Switzerland and Mexico – could also face new limits on chip access.
A group of 18 close US allies, including the UK, Australia, Canada and Taiwan, won’t face any new restrictions, according to the White House.
Additionally, relatively small orders of 1,700 or less advanced chips – described as the “overwhelming majority” of orders – won’t require a license or count toward national chip counts.
Companies that offer cloud computing services internationally, such as Microsoft, Amazon and Google, can apply for exemptions provided they meet certain security requirements.
Commerce Secretary Gina Raimondo, who has led the administration’s effort to enforce export controls, argued that the restrictions would maintain US leadership in artificial intelligence while still protecting national security.
“As AI becomes more powerful, the risks to our national security become even more intense,” Raimondo said during a call with reporters.
Nvidia is the latest of several US-based tech firms that have sought closer ties with Trump since his election win.
Meta’s Mark Zuckerberg and Amazon’s Jeff Bezos have each met with Trump in recent weeks, while X owner Elon Musk is a key adviser to the president-elect.
Trump has vowed to support US tech innovation and appointed former PayPal executive David Sacks to serve as “White House AI and crypto czar,” a newly created position.
With Post wires
