NVIDIA Slams Biden’s AI Rules, Warns of Stifling US Innovation

NVIDIA has strongly criticised the Biden administration’s new “AI Diffusion” rule, set to impose restrictions on global access to AI chips and technology. The company argues that the regulation, expected to take effect in 120 days, threatens to undermine U.S. leadership in artificial intelligence and stifle innovation worldwide.

Ned Finkle, vice president of government affairs at NVIDIA, said, “The Biden Administration now seeks to restrict access to mainstream computing applications with its unprecedented and misguided ‘AI Diffusion’ rule, which threatens to derail innovation and economic growth worldwide”.

“For decades, leadership in computing and software ecosystems has been a cornerstone of American strength and influence worldwide,” he added.  

He further noted that under the previous Trump Administration, policies had fostered a competitive environment that allowed U.S. industries to lead in AI innovation without compromising national security.

The Biden administration has introduced new restrictions on the export of US-developed computer chips used in artificial intelligence (AI) systems to prevent rivals like China from accessing advanced technology. The move comes just a week before President-elect Donald Trump’s inauguration.

These measures, part of a long-standing effort to curb China’s progress in military and industrial leadership, are likely to heighten tensions between Washington and Beijing. The 200-page regulation imposes limits on exporting advanced AI chips and technology to countries like China while introducing a Pentagon initiative to use AI models for cyber defence and a pilot program to bolster energy sector cybersecurity.

In a recent appearance on Joe Rogan’s podcast, Zuckerberg revealed that the Biden administration had pressured Meta to censor content related to COVID-19 vaccines.

“They pushed us super hard to take down things that were honestly true,” said Zuckerberg. He claimed that administration officials would “scream” and ‘curse” at Meta employees during discussions on content moderation.

Last year, a16z venture capitalist Marc Andreessen also expressed serious concerns about the Biden administration’s approach to AI regulation. After meetings with government officials in May 2024, Andreessen described the experience as ‘absolutely horrifying.’ He claimed that officials discouraged investments in AI startups, saying, “They actually said flat out to us, ‘Don’t do AI startups, like, don’t fund AI startups.’”