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Nvidia snaps back at Biden's 'innovation-killing' AI chip export restrictions

Jan 13, 2025 - theregister.com
The Biden administration has introduced new export restrictions on AI chip technology, aiming to maintain U.S. dominance in AI infrastructure and enhance national security. The Final Rule on Artificial Intelligence Diffusion limits the export of AI-focused chips to most countries, with exemptions for key allies like Japan, the UK, South Korea, and the Netherlands. The policy intends to restrict the transfer of advanced AI model weights to non-trusted countries and set security standards to protect these models. Nvidia has criticized the regulations, arguing they could harm U.S. technological leadership and innovation by imposing bureaucratic controls and stifling competition.

Nvidia's VP of government affairs, Ned Finkle, claims the rules were drafted without proper legislative review and could undermine America's global competitiveness. The company warns that the policy might significantly impact the GPU market, with potential losses of up to 80 percent. The rules, expected to take effect 120 days from publication, also require companies like Microsoft and Amazon to seek authorization for building datacenters with GPUs outside the U.S. The U.S. Secretary of Commerce, Gian Raimondo, defends the policy as a measure to build a trusted technology ecosystem and manage national security risks associated with AI.

Key takeaways:

  • The Biden administration has introduced AI chip export restrictions to maintain US market dominance and national security.
  • Nvidia criticizes the new rules, claiming they undermine US technological leadership and innovation.
  • Exemptions from the restrictions are granted to key allies, while countries like China, Russia, and Iran face bans.
  • Hyperscale operators like Microsoft and Amazon must seek global authorization to build datacenters with GPUs outside the US.
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