Nvidia pushes back on Biden admin's 'misguided' AI order

Published On Jan 14, 2025, 1:01 PM

Nvidia has expressed strong opposition to a new AI executive order from the Biden administration, which aims to control the export of U.S.-developed AI technologies to rival countries. Nvidia's Vice President criticized the order as 'misguided' and detrimental to global AI progress, arguing it stifles innovation and highlights a bureaucratic overreach. The rule prioritizes security concerns by allowing exports only to certain allied nations while restricting sales to nations deemed security threats, like China. Nvidia asserts that these rules will not enhance U.S. security and may ultimately undermine the country's technological leadership.

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Nvidia's opposition to the AI order reflects a significant concern that regulations might hinder their business, particularly in international markets. As the largest supplier of high-end chips, changes in market dynamics can impact their sales and stock performance.

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Nvidia stock fell Monday after the Biden administration released new rules aimed at controlling the flow of artificial intelligence to China.

The new rules are intended to make sure the "the world's AI runs on American rails", and stays out of the hands of "malicious actors", say officials.