NVIDIA Statement on the 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 AI, fostering an environment where U.S. industry could compete and win on merit without compromising national security. As a result, mainstream AI has become an integral part of every new application, driving economic growth, promoting U.S. interests and ensuring American leadership in cutting-edge technology.

Today, companies, startups and universities around the world are tapping 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 AI around the world fuels growth and opportunity for industries at home and abroad.

That global progress is now in jeopardy. The Biden Administration now seeks to restrict access to mainstream computing applications with its unprecedented and misguided “AI Diffusion” rule, which threatens to derail innovation and economic growth worldwide.

In its last days in office, the Biden Administration seeks to undermine America’s leadership with a 200+ page regulatory morass, drafted in secret and without proper legislative review. This sweeping overreach would impose bureaucratic control over how America’s leading semiconductors, computers, systems and even software are designed and marketed globally. And by attempting to rig market outcomes and stifle competition — the lifeblood of innovation — the Biden Administration’s new rule threatens to squander America’s hard-won technological advantage.

While cloaked in the guise of an “anti-China” measure, these rules would do nothing to enhance U.S. security.  The new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware. Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead.

Although the rule is not enforceable for 120 days, it is already undercutting U.S. 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 government overreach. We look forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond.

Ned Finkle is vice president of government affairs at NVIDIA.