[News] Biden Reportedly Sets to Tighten NVIDIA AI Chip Exports, with New Curbs Expected as Soon as Friday

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The Biden administration seems to be preparing a farewell gift, as it reportedly plans to launch one last round of restrictions on AI chip exports from companies like NVIDIA, as per Bloomberg. According to sources familiar with the matter, the Bloomberg report suggests that the regulations could be released as early as Friday.

The curbs are expected to be extremely broad in scope, as the U.S. seeks to restrict AI chip sales for data centers on both country-specific and company-specific levels, aiming to concentrate AI development in allied nations and encourage global businesses to adhere to American standards, Bloomberg indicates.

A Three-tier Chip Trade Restrictions

Notably, sources told Bloomberg that the regulations would establish a three-tier system of chip trade limitations, aiming to block access to advanced technologies for China and Russia.

In detail, the proposed system would grant near-unrestricted access to American chips for key allies, while adversaries would be largely cut off, as per Bloomberg.

Most other countries would face limits on total computing power, though higher caps could be granted if they agree to certain U.S. standards, according to a source cited by Bloomberg. This designation, known as a validated end user (VEU), seeks to establish trusted partners for secure AI development globally, the report adds.

NVIDIA Voices Opposition

NVIDIA, with certain of its AI chips banned from shipping to China from 2022 and targeted with an antitrust probe by China lately, voiced its objection to the proposal.

As per Bloomberg, NVIDIA stated that “a last-minute rule restricting exports to most of the world would be a major shift in policy that would not reduce the risk of misuse but would threaten economic growth and US leadership.”

China remains one of NVIDIA’s largest markets amid the chip export curbs though, as the country reportedly contributes to roughly 15% of its total revenue. A previous report from The Information noted that Chinese tech giant ByteDance is planning to spend as much as USD 7 billion on buying NVIDIA chips in 2025.

And NVIDIA may not be the only company to voice its disagreement. According to CNBC, the Information Technology Industry Council, representing firms like Amazon, Microsoft, and Meta, urged Biden’s administration to hold back on a last-minute rule restricting global AI chip access on January 7^th, warning it could harm U.S. leadership in artificial intelligence.

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