In This Article:
On Thursday, Nvidia (NVDA, Financial) voiced sharp criticism over a reported Biden administration plan to impose new restrictions on AI chip exports. However, the company argued that the move, indicated to stymie China's military advances, could 'significantly damage U.S. economic competitiveness and bolster U.S. adversaries'.
Nvidia, which makes graphics chips used in graphic-intensive applications, such as CAD and gaming, urged our outgoing administration to delay setting policy until after President-elect Trump takes office, fearing it would lead to unnecessary economic setbacks and losing America's technology lead. A policy like this will only hurt the U.S. economy, set America back, and work in favour of U.S. adversaries, Nvidia's spokesperson said in a statement.
The U.S. Commerce Department and White House had yet to comment on the plan, which would prohibit critical AI chips from reaching U.S. adversaries. Additionally, the move seeks to control computing power, which is exported to different countries. Finkle cautioned, however, that the restrictions could have a side effect of a more wide-ranging and unintended global impact, drawing markets to alternate technologies.
The Information Technology Industry Council has warned the measure would impose arbitrary restrictions on U.S. companies' ability to sell computing systems overseas. The details of the regulations are under wraps, with little known about the potential consequences to U.S. industry and to the global market.
This article first appeared on GuruFocus.