Nvidia is taking the Biden Administration to task, saying its “AI Diffusion” rule is misguided and undermines America’s ability to compete.

The AI Diffusion rule expands the administration’s restrictions on the export of chips used to power AI models.

With this interim final rule, the Commerce Department’s Bureau of Industry and Security (BIS) revises the Export Administration Regulations’ (EAR) controls on advanced computing integrated circuits (ICs) and adds a new control on artificial intelligence (AI) model weights for certain advanced closed-weight dual-use AI models. In conjunction with the expansion of these controls, which BIS has determined are necessary to protect U.S. national security and foreign policy interests, BIS is adding new license exceptions and updating the Data Center Validated End User authorization to facilitate the export, reexport, and transfer (in-country) of advanced computing (ICs) to end users in destinations that do not raise national security or foreign policy concerns. Together, these changes will cultivate secure ecosystems for the responsible diffusion and use of AI and advanced computing ICs.

Nvidia says the rule is a stark departure from the policies put forward by the first Trump administration.

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.

Nvidia says the Biden Administration is pushing through legislation, at the last minute, that will cripple America’s AI innovation.

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.

Nvidia Joins a Growing List of Companies Appealing to Trump

On the eve of President-elect Donald Trump’s second term, companies are bending over backward to get into his good graces. This is especially true within the tech industry given Trump’s vocal criticism of Big Tech.

Meta announced it is ending its fact-checking program in favor of community moderation, and major banks bailed on the Net Zero Banking Alliance. Both moves were were seen as efforts to appease Trump and his allies, and avoid a confrontation with the incoming administration.

While Nvidia’s commentary is certainly an appeal to the incoming Trump administration to loosen the Biden administration’s export rules, it also appears to be a thinly veiled attempt to get and stay on Trump’s good side.