NVIDIA, one of America's leading semiconductor companies, has strongly criticized the Biden Administration's new "AI Diffusion" rule, calling it an unprecedented overreach that threatens global innovation and US technological leadership.
In a statement released by Ned Finkle, NVIDIA's Vice President of Government Affairs, the company argues that the 200+ page regulation, which was reportedly drafted without proper legislative review, would impose bureaucratic control over the design and marketing of American semiconductors, computers, systems, and software globally.
The new rules aim to restrict access to mainstream computing applications, including technology currently available in gaming PCs and consumer hardware.
While presented as an anti-China measure, NVIDIA contends that these restrictions would affect technology deployment worldwide and ultimately weaken America's competitive position in the global market.
Finkle drew a contrast with the previous Trump Administration's approach, which he credited for establishing the foundation of America's current AI leadership by allowing US industry to compete freely while maintaining national security.
Under those policies, mainstream AI has become integral to applications across healthcare, agriculture, manufacturing, and education sectors.
Undermines US interests?
Although the rule won't be enforceable for 120 days, NVIDIA claims it is already undermining US interests. The company argues that America's technological advantage is best maintained through innovation and competition, rather than government restrictions on technology sharing.
The statement reflects growing tension between the tech industry and the Biden Administration over the regulation of artificial intelligence technologies, particularly regarding international trade and competition with China.
The controversy comes at a time when AI technology has become increasingly central to global economic growth and technological advancement, with American companies playing a leading role in its development and deployment.