Nvidia pushes back on Biden admin’s AI order

Tech giant Nvidia is pushing back on a new executive order by the Biden administration that seeks to prevent artificial intelligence (AI) technologies developed in the U.S. from falling into the hands of adversarial countries.

The White House announced the new AI rule on Monday, which seeks to encourage the “diffusion” of U.S.-made AI technologies to allied countries while also putting in place restrictions on the sale of advanced chips to foreign countries that could pose a national security risk.

“This policy will help build a trusted technology ecosystem around the world and allow us to protect against national security risks associated with AI, while ensuring controls do not stifle innovation or U.S. technological leadership,” said Commerce Secretary Gina Raimondo. “Managing these very real national security risks requires taking into account the evolution of AI technology, the capabilities of our adversaries, and the desire of our allies to share in the benefits of this technology.”

Ned Finkle, vice president of government affairs at Nvidia, wrote in a post on the company website that the Biden administration’s action puts in jeopardy global progress in AI and said the “unprecedented and misguided” AI diffusion rule “threatens to derail innovation and economic growth worldwide.”

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President Biden’s administration finalized the new AI rule in his final week in office.  (Ron Sachs / Getty Images)

“This sweeping overreach would impose bureaucratic control over how America’s leading semiconductors, computers, systems and even software are designed and marketed globally. And by attempting to rig market outcomes and stifle competition – the lifeblood of innovation – the Biden Administration’s new rule threatens to squander America’s hard-won technological advantage,” Finkle wrote.

He added that while the rule is “cloaked in the guise of an ‘anti-China’ measure, these rules would do nothing to enhance U.S. security. The new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware.”

“Although the rule is not enforceable for 120 days, it is already undercutting U.S. interests. 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 wrote. “We look forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond.”

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