NVIDIA Statement on Biden Administration’s Misguided ‘AI Diffusion’ Rule

For decades, leadership in computing and software ecosystems has been a cornerstone of American strength and influence worldwide. The federal government has wisely refrained from dictating the design, marketing, and sale of mainstream computers and software—key drivers of innovation and economic growth.

The first Trump administration laid the foundation for America’s current strength and success in artificial intelligence, fostering an environment in which American industry could compete and profitably win without compromising national security. As a result, mainstream AI has become an integral part of every new application that drives economic growth, advances American interests, and ensures American leadership in advanced technology.

Today, companies, startups and universities around the world are leveraging mainstream AI to advance healthcare, agriculture, manufacturing, education and countless other fields, driving economic growth and unlocking the potential of nations. Built on American technology, the adoption of artificial intelligence worldwide is providing growth and opportunities for industries at home and abroad.

Global progress is now at risk. The Biden Administration is now seeking to limit access to mainstream computing applications with its unprecedented and misguided “AI Diffusion” rule, which threatens to derail innovation and economic growth worldwide.

In its final days in office, the Biden administration is seeking to undermine America’s leadership with a more than 200-page legislative morass, drafted in secret and without proper legislative review. This sweeping crackdown would impose bureaucratic controls on how America’s leading semiconductors, computers, systems and even software are designed and marketed globally. And by trying to manipulate market outcomes and stifle competition — the lifeblood of innovation — the Biden administration’s new rule threatens to squander America’s hard-won technological advantage.

Although covered by an “anti-China” measure, these rules would do nothing to improve US security. The new rules will control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware. Instead of mitigating any threat, the new Biden rules would only weaken America’s global competitiveness and undermine the innovation that has kept America ahead.

Although the rule is not enforceable for 120 days, it already undermines US interests. As the first Trump administration demonstrated, America wins through innovation, competition, and by sharing our technologies with the world—not by retreating behind a wall of excessive government. We look forward to a return to policies that strengthen American leadership, strengthen our economy, and maintain our competitive advantage in artificial intelligence and beyond.

Ned Finkle is vice president of government affairs at NVIDIA.