Nvidia falls in pre-sale as group criticizes Biden’s plan to curb AI chip exports By Investing.com
Investing.com – Shares of Nvidia (NASDAQ: ) fell in premarket trading on Friday after reports that new U.S. chip export restrictions could be announced soon.
The outgoing Biden administration’s changes would limit sales of U.S. AI-optimized chips at the country and company level, effectively curtailing processor exports to much of the world, Bloomberg News reported.
The updated rules could be released as early as Friday, Bloomberg News said, adding that the changes would create three levels of chip restrictions. Citing sources familiar with the matter, the news service noted that while some US allies will continue to have full access to US semiconductors, there will be new limits on the total computing power that can go to one country for the vast majority of the world.
If the changes are announced, they will come just two weeks before President-elect Donald Trump is slated to replace Biden in the White House.
In an emailed statement cited by several media sources, Nvidia Vice President Ned Finkle said Biden should not “preempt President-elect Trump” with policy changes. Finkle argued that it would “harm the American economy, set America back and benefit America’s adversaries.”
“An extreme ‘country cap’ policy will affect mainframes in countries around the world, doing nothing to promote national security, but pushing the world toward alternative technologies,” Finkle said, according to media reports. Finkle warned that the move would leave the Biden administration with “a legacy that will be criticized by American industry and the global community.”
As a vendor of processors that help data centers operate and develop cutting-edge artificial intelligence models, Nvidia has become one of the leaders in the growing enthusiasm for artificial intelligence applications.
The White House and the US Commerce Department did not immediately respond to a request for comment, Reuters reported.
(Reuters contributed reporting.)
