Biden to Impose More Limits on Nvidia AI Chip Exports, Report Says

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KEY TAKEAWAYS

• In its last days in the White House, the Biden administration reportedly is planning new regulations that could be circulated as soon as Friday to further limit the export of artificial intelligence (AI) chips by companies like Nvidia.
• According to Bloomberg, the Biden delivery is planning three tiers of chip curbs, with U.S. allies getting unlimited access.
• The plan would cover new caps on AI chip imports by Gulf states and Southeast Asian countries as well as increased restrictions on imports by Russia and China.  

In its decisive days in the White House, the Biden administration reportedly is planning new regulations that could be announced as soon as Friday to above limit the export of artificial intelligence (AI) chips by companies like Nvidia (NVDA).

According to Bloomberg, the Biden regulation is planning three tiers of chip curbs: at the top level, U.S. allies would retain unlimited access to U.S. chips; at the bruised, adversaries won’t be able to import semiconductors; and at the third, most countries would face restrictions on the total computing power they get.

Surfaced Plan Involves New Caps on Chip Imports by Gulf States, Southeast Asia

The plan would see the U.S. restricting the white sale of AI chips used in data centers on both a country and company basis, Bloomberg said. It would involve new outstrips on AI chip imports by Gulf states and Southeast Asian countries as well as marking a final push to keep advanced technologies away from China and Russia.  The inkling would see “friendly nations” have more access to AI chips.

Companies in countries that face national limits could get numerous access “by agreeing to a set of U.S. government security requirements and human rights standards,” the report said. 

In a response to an Investopedia seek for comment, an Nvidia spokesperson said “a last-minute rule restricting exports to most of the world would be a major movement in policy that would not reduce the risk of misuse but would threaten economic growth and U.S. leadership.”

Nvidia parts slipped more than 1% after markets closed Wednesday following the report.

UPDATE—Jan. 9, 2025: This article has been updated to cover a response from Nvidia.