Nvidia executive assures Biden chip bans will harm US economy

(MENAFN) Nvidia has strongly criticized the Biden administration’s plans to restrict AI chip exports, with the company’s Vice President, Ned Finkle, arguing that the policy could harm the US Economy and benefit adversaries. In a statement to Reuters, Finkle described the move as a “last-minute policy” intended to preempt the incoming administration of President-elect Donald Trump.

The Biden administration is rushing to implement rules that would limit the export of AI chips used in data centers to nations considered adversaries, such as China and Russia. The US Commerce Department has proposed strict compliance measures for American companies, including reporting requirements and blocking Chinese access to AI chips. Finkle cautioned that such restrictions could backfire, potentially setting the US back and giving global competitors an advantage.

The Information Technology Industry Council, which represents major companies like Amazon, Microsoft, and Meta, also opposes the restrictions, arguing that they place unnecessary constraints on US businesses. The Biden administration had previously expanded its crackdown on AI chip sales to China, with additional restrictions imposed on 140 entities in December.

Nvidia urged the administration to reconsider its policy, warning that it risks driving global markets toward alternative technologies, weakening US leadership in AI. Additionally, the US Commerce Department had asked Nvidia to investigate how its chips ended up in China, despite the restrictions. Nvidia maintains that it complies with export controls and that unauthorized resales through grey markets harm its business.

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