Michael Landsberg, CIO of Landsberg Bennett Private Wealth Management, discusses investing exposure to AI on Making Money.
Tech giant Nvidia is opposing a new executive order from the Biden administration that aims to prevent artificial intelligence (AI) technologies developed in the United States from falling into the hands of adversary countries.
The White House announced a new AI rule on Monday, which aims to encourage the “spread” of U.S.-made AI technologies to allied countries, while putting restrictions on the sale of advanced chips to foreign countries that could pose a risk to national security. .
“This policy will help build a trusted technology ecosystem around the world and allow us to protect against the national security risks associated with AI, while ensuring that controls do not stifle the innovation or technological leadership of United States,” Commerce Secretary Gina Raimondo said. “Managing these very real risks to national security requires taking into account the evolution of AI technology, the capabilities of our adversaries, and the desire of our allies to share the benefits of this technology.”
Ned Finkle, vice president of government affairs at Nvidia, wrote in a post on the company’s website that the Biden administration’s action jeopardizes global progress in AI and said the “Unprecedented and misguided” AI diffusion rule threatens to derail innovation and economic growth. global.”
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President Biden’s administration finalized the new AI rule during its final week in office. (Ron Sachs/Getty Images)
“This overreach would impose bureaucratic control over how major U.S. 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-earned technological advantage,” wrote Finkle.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 133.23 | -2.68 | -1.97% |
He added that even if the rule is “hidden under the guise of an ‘anti-China’ measure, these rules would do nothing to strengthen the security of the United States. The new rules would control technology worldwide, including technology already widely available in consumer gaming PCs. and consumer hardware.
“While the rule is not enforceable for 120 days, it is already harming U.S. interests. As the first Trump administration demonstrated, America wins through innovation, competition, and sharing its technologies with the world – not by hiding behind a wall of government excess,” Finkle wrote. “We look forward to a return to policies that strengthen American leadership, support our economy, and preserve our competitive advantage in AI and beyond.”
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Nvidia is a leading seller of high-end chips and has faced challenges related to sales restrictions to countries like China. (Photographer: Loren Elliott/Bloomberg via Getty Images / Getty Images)
The Biden administration’s AI diffusion rule creates an exception for exports of advanced AI chips to 18 key U.S. allies and partners that have technology protection regimes and are aligned with security interests national and foreign policy of the United States. The exception allows them to make large-scale purchases with complete transparency.
Orders for chips with collective computing power of up to about 1,700 advanced GPUs do not require licensing and do not count toward national chip caps – with most chip orders falling into this category, according to the White House.
The rule grants “verified universal end user” status to entities that meet security and trust standards and are headquartered in countries close allies of the United States, allowing them to invest up to 7% of their global AI computing capacity abroad. It also creates a “Verified National End User” designation for entities not headquartered in a country of concern, to access up to 320,000 advanced GPUs over two years.
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It also continues to prevent the delivery of advanced AI chips to countries of concern, while allowing access to general-purpose applications and restricting the transfer of AI chips to untrusted actors.
