The outgoing Biden Administration's "AI Diffusion" rule essentially tightens controls on all AI hardware and algorithm/model exports, dictating which countries are allowed full access to AI silicon from American companies. In contrast, those not on the 'nice' list must apply for a special license to obtain more than 1,700 AI chips - including access to the most powerful AI models created by US tech companies.
The complete list of trusted countries is as follows: UK, Canada, Australia, Japan, France, Germany, Belgium, Denmark, Finland, Ireland, Italy, the Netherlands, New Zealand, Norway, the Republic of Korea, Spain, Sweden, and Taiwan. Everyone else, including China, must abide by the new "AI Diffusion rule" set to be enforced by the Commerce Department's Bureau of Industry and Security.
As one of the leaders in AI hardware and software across all industries, NVIDIA is unhappy with the new rule, stating that the "AI Diffusion" rule "threatens to derail innovation and economic growth worldwide."
The company released a statement earlier this week, penned by its vice president of government affairs, Ned Finkle. The statement opens by praising the first Trump Administration for laying the foundation for AI's success and growth and "fostering an environment where U.S. industry could compete and win on merit without compromising national security."
"Today, companies, startups, and universities around the world are tapping mainstream AI to advance healthcare, agriculture, manufacturing, education and countless other fields, driving economic growth and unlocking the potential of nations," the statement reads. "Built on American technology, the adoption of AI around the world fuels growth and opportunity for industries at home and abroad."
NVIDIA goes on to call the new rules a "200+ page regulatory morass," blasting the Biden Administration for drafting them in secret without proper review. It's a fascinating read, and the takeaway is that NVIDIA believes the new rules won't 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," it continues. "Rather than mitigate any threat, the new Biden rules would only weaken America's global competitiveness, undermining the innovation that has kept the U.S. ahead."
The statement closes with a call to the Trump Administration to "bolster our economy and preserve our competitive edge in AI and beyond."
