Nvidia is reportedly very upset by the new AI Act recently introduced. Nvidia has expressed strong concern that the proposed AI gains method will curb global competition and will have a negative impact on the US economy. The company said the bill could have similar effects as AI spreading rules.Ensuring access and innovation in the National Artificial Intelligence Act is short for the new law to be part of the National Defense Authorization Act. Before meeting international demands, US chip manufacturers must prioritize domestic orders for advanced processors.A Nvidia spokesman said the company would not prioritize foreign customers over American customers. “In trying to solve problems that don't exist, the proposed bill would limit competition worldwide in any industry using mainstream computing chips,” the spokesman said. The company added that the US has always been and will remain the largest market.Both the AI Gain Act and the AI Proliferation Rules are efforts by the US government to prioritize domestic needs and provide access to high-end chips for American companies. This comes amid concern that China can use advanced AI capabilities to strengthen its military.
The meaning of the AI Gain Act is meaningful to chip companies
If passed, the law imposes new trade restrictions and requires exporters to obtain licenses for shipping chips above certain performance thresholds. The bill says it should be a US policy to “reject a license to export the most powerful AI chips, including those with total processing power of over 4,800.” It also aims to restrict exports of advanced chips to foreign entities when US companies are waiting for the same chip.These rules are similar to some of the conditions under former President Joe Biden's AI Proliferation Rules, assigning certain levels of computing power to US allies and other countries. The bill outlines specific technical thresholds for classifying chips as “Advanced” and retrieves pages from the Biden administration's 2023 book when it comes to benchmarks, but will be stronger when it comes to memory bandwidth.Last month, President Donald Trump reportedly signed a contract with NVIDIA, allowing the company to resume exports of previously banned AI chips to China in exchange for a portion of its sales.
