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Landsberg Bennett Private Wealth Management CIO Michael Landsberg discusses AI investing’s exposure to making money.
Tech giant Nvidia is reversing a new executive order from the Biden administration that it aims to prevent artificial intelligence (AI) technologies developed in the US from falling into the hands of adversary countries.
The White House announced the new AI rule on Monday, which aims to encourage the “diffusion” of US-made AI technologies to allied countries while placing restrictions on the sale of advanced chips to foreign countries that could pose a risk to the 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 America’s innovation and technological leadership.” said Commerce Secretary Gina Raimondo. “Managing these real national security risks requires taking into account the evolution of AI technology, the capabilities of our adversaries, and the desire of our allies to share in the benefits of this technology.”
Ned Finkle, Nvidia’s vice president of government affairs, wrote in a post on the company’s website that the Biden administration’s action jeopardizes global AI progress and said the diffusion rule of “unprecedented and misguided” AI “threatens to derail innovation and economic growth.” around the world.”
President Biden’s administration finalized the new AI rule in his last week in office. (Ron Sachs/Getty Images)
“Such reach would impose bureaucratic control over how major U.S. semiconductors, computers, systems, and even software are designed and marketed globally. And by trying to manipulate market outcomes and stifle competition, the blood of the innovation, the Biden Administration’s new rule threatens to squander America’s hard-won technological advantage,” Finkle wrote.
| Ticker | security | last | change | % change |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 133.23 | -2.68 |
-1.97% |
He added that although the rule is “cloaked in the guise of a “anti-China” measure.these rules would do nothing to improve US security. The new rules would control technology around the world, including technology that is already widely available in mainstream gaming PCs and consumer hardware.”
“Although the rule is not applicable for 120 days, it is already undermining US interests. As the first Trump administration demonstrated, America wins through innovation, competition and sharing our technologies with the world, not retreating behind a wall of government excess,” Finkle wrote. “We look forward to a return to policies that strengthen Northern leadership -American, strengthen our economy and preserve our competitive edge in AI and beyond.”
Nvidia is a leading seller of high-end chips and has faced headwinds from restrictions on sales in countries such as China. (Photo: Loren Elliott/Bloomberg via Getty Images/Getty Images)
The Biden Administration AI Dissemination Rule creates an exception for exports of advanced AI chips to 18 key US allies and partners that have technology protection regimes and are aligned with US national security and foreign policy interests. The exception allows them to make large-scale purchases without problems.
Orders for chips with a collective computing power of up to approximately 1,700 advanced GPUs do not require a license and do not count against national chip limits, with the majority of chip orders falling into this category, according to the White House .
The rule provides “Universal Verified End User” status for entities that meet security and trust standards and are based in countries that are close allies of the United States, allowing them to put up to 7% of its global AI computational capacity abroad. It also creates a “National Verified End-User” designation for entities based anywhere that is not a country of concern to access up to 320,000 advanced GPUs over two years.
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It also continues to be restricted advanced AI chips from going to countries of interest, while allowing access to general-purpose applications and restricting the transfer of AI chips to untrusted actors.
