NVIDIA has strongly criticised the Biden Administration’s new “AI Diffusion” rule. Specifically, this regulation imposes strict controls on the export of AI technology. As a result, countries that are not on a select list of trusted nations must apply for a special license. This license is required to obtain advanced AI chips and models developed by U.S. companies.
In a statement released earlier this week, NVIDIA’s Vice President of Government Affairs, Ned Finkle, expressed deep concerns about the impact of the new rule, which he argues could significantly hinder global technological progress. He explained that the regulation could disrupt the rapid development of AI worldwide. This is especially concerning for industries like healthcare, agriculture, and education. In these sectors, AI is being used to unlock immense potential.
NVIDIA Addresses its Concerns
NVIDIA, known for powering some of the most advanced AI systems worldwide, issued a warning. The company argued that the rule could stifle innovation and economic growth. It also contended that American-made AI technology plays a key role in driving global advancements. Limiting access to these technologies, NVIDIA said, could undermine progress in critical fields.
“The adoption of AI around the world fuels growth and opportunity for industries at home and abroad,” Finkle said in the statement. He pointed out that the technology at the heart of this regulation is already commonly used in mainstream gaming PCs and consumer hardware, calling into question the need for such strict controls.
Criticism of the Rule’s Process
NVIDIA also took issue with the way the rule was developed. Finkle described it as a “200+ page regulatory morass.” Furthermore, he criticised the Biden Administration for drafting the regulations in secret. This process, he argued, lacked proper industry review or consultation. In addition, Finkle emphasised that the rule was created with minimal input from key stakeholders in the tech and AI sectors. As a result, he warned that this approach could overlook the long-term consequences of innovation.
Impact on Global Competitiveness
The tech giant also warned that these new restrictions would ultimately harm America’s competitive edge in the global AI race. By curbing access to advanced AI technologies, NVIDIA believes the U.S. risks falling behind in the very sector it helped lead. The company argued that such controls might weaken the nation’s technological dominance rather than enhance national security, as intended.
“Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead,” Finkle concluded.
A Plea for Future Policy
In closing, NVIDIA urged the Biden Administration to reconsider the regulation. The company emphasised the importance of focusing on policies that promote economic growth, technological leadership, and global cooperation in AI development. NVIDIA called on the incoming administration to establish a regulatory environment that enhances the U.S.’s position in the rapidly evolving AI space. At the same time, the company stressed the need to ensure national security is not compromised.
