With the presidential transition just days away, Biden announces new restrictions on AI chip exports

The Biden Administration on Monday announced new restrictions on the export of advanced Artificial Intelligence (AI) chips to countries such as China and Russia. According to an official White House statement, these measures seek to protect national security, prevent the development of advanced weapons and prevent human rights abuses related to mass surveillance.

The statement details that the controls will be focused on blocking US adversaries' access to advanced technology, while 18 allied countries, including Canada, Germany, Taiwan, Japan and the United Kingdom, will be exempt from these limitations.

"In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses, such as mass surveillance," the statement notes.

Concern over technological advancement in China

Despite previous restrictions imposed since 2022, China has managed to accumulate thousands of advanced chips through smuggling networks, using this technology to drive its own developments in artificial intelligence. The Biden administration hopes the new measures will close existing loopholes and further hinder China's access to cutting-edge US technology.

Criticism from the technology industry

The tech industry was quick to react. Nvidia, a leading manufacturer of AI chips, expressed concern over the new restrictions. The company warned that these policies could affect US competitiveness by ceding a share of the global market to China.

"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," Nvidia representative Ned Finkle said.

Furthermore, Finkle added, "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."

Following the announcement, Nvidia shares dropped nearly 2% on Monday, reflecting the uncertainty these measures generate in the sector.

The move, announced just days before the presidential change of command, increases pressure on the incoming administration to decide how it will manage these strategic controls. Should Trump make no modifications, the new rules will take effect within 120 days.