Nvidia flatters Trump in response to Biden’s new restrictions on AI chips

Nvidia is cozying up to the new Trump administration after criticizing a new AI framework recently announced by the Biden administration. The rules aim to keep advanced chips and AI models under the control of the United States and its allies, but the president-elect will have the final decision on whether they are enforced.

If implemented, the “Interim Final Rule on the Diffusion of Artificial Intelligence” announced today would impose new limits on the number of artificial intelligence chips that companies can send to different countries without entering into agreements special deals with the US government. Nvidia will be hit the hardest, given its estimated 90% share of AI chips.

The new rules aim to close loopholes that would allow countries like China and Russia – which are already subject to existing trade restrictions on semiconductors – to obtain or develop their own AI technology. The Biden administration wants to keep transformational AI development under the control of the United States and 18 of its allies, including the United Kingdom, Canada, Germany, Japan, Taiwan and South Korea. All other countries will be subject to caps that restrict imports of AI chips.

“In the wrong hands, powerful AI systems can potentially exacerbate significant national security risks, including enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and enabling human rights abuses. ‘man, such as mass surveillance,’ the White report said. House said in a statement. “Today, countries of concern are actively using AI – including US-made AI – in this way and seeking to undermine US leadership in AI. »

Nvidia says new restrictions on the “diffusion of AI” threaten to derail “innovation and economic growth” globally and undermine the previous Trump administration’s efforts to create a successful environment for the development of AI.

“In its final days in office, the Biden administration seeks to undermine American leadership with a regulatory quagmire of more than 200 pages, drafted in secret and without proper legislative review,” Nvidia said in a statement. “This overreach would impose bureaucratic control over how major U.S. semiconductors, computers, systems and even software are designed and marketed globally.”

“The first Trump administration laid the foundation for America’s current strength and success in AI, fostering an environment in which American industry could compete and win on the basis of merit without compromising national security”, we can read in the Nvidia press release. “Rather than mitigating any threats, Biden’s new rules would only weaken America’s global competitiveness, undermining the innovation that has kept the United States ahead of the curve.” »

“We look forward to a return to policies that strengthen American leadership, support our economy, and preserve our competitive advantage in AI and beyond,” Nvidia said in its MAGA conclusion.

Nvidia is notably not among the list of tech companies that donated to Trump’s inaugural fund and CEO Jensen Huang was not invited to Mar-a-Lago. Perhaps that will change now that Nvidia has reason to court favor.

In addition to limiting AI chip exports, the rules also establish security standards to control AI model “weights” — the unique parameters that determine how each AI model makes its predictions. Companies like Microsoft and Google that operate data centers can also apply for special government accreditations that allow them to trade AI chips with fewer restrictions, in exchange for meeting security standards set by the Biden administration.

The new data center rules aim to keep the development of the most advanced AI models within the borders of the United States and its partners. According to the New York Times, Microsoft says it can “fully comply with the high security standards of this rule and meet the technology needs of countries and customers around the world who rely on us,” in a statement attributed to Microsoft President Brad Smith.