Nvidia has responded scathingly to the Biden administration's new AI chip restrictions, praising the Trump administration's efforts to strengthen American leadership in AI development. The "Interim Final Rule on Artificial Intelligence Diffusion" announced by the Biden administration aims to place new limitations on how many artificial intelligence chips companies can send to different countries without making special agreements with the US government.

The new rules are designed to close loopholes that would allow countries like China and Russia to obtain or develop their own AI technology, and to keep transformational AI development under the control of the US and its 18 allies. However, Nvidia, which has an estimated 90% share of AI chips, claims that the new restrictions threaten to derail worldwide "innovation and economic growth," and undermine the prior Trump administration's efforts to create a successful environment for AI development.

In a statement, Nvidia said that the new "AI Diffusion" restrictions are a "200+ page regulatory morass, drafted in secret and without proper legislative review." The company went on to praise the Trump administration, stating that "the first Trump Administration laid the foundation for America's current strength and success in AI, fostering an environment where US industry could compete and win on merit without compromising national security."

Nvidia's response has been seen as an attempt to curry favor with the incoming Trump administration, which will ultimately have the final decision on whether to enforce the new AI rules. The company's statement concluded with a nod to Trump's "Make America Great Again" (MAGA) slogan, saying "We look forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond."

The new rules also set security standards to control the "weights" for AI models, which are the unique parameters that determine how each AI model makes its predictions. Companies like Microsoft and Google that operate data centers can apply for special government accreditations that allow them to trade AI chips with fewer restrictions, in exchange for following security standards outlined by the Biden administration.

The rules aim to keep the development of the most advanced AI models within the borders of the United States and its partners. Microsoft has stated that it could "comply fully with this rule's high security standards and meet the technology needs of countries and customers around the world that rely on us."

The Biden administration's move to restrict AI chip exports is seen as a bid to maintain US leadership in AI development, amid growing concerns that countries like China and Russia could use AI technology to undermine national security. The White House has warned that "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 new rules have sparked a heated debate in the tech industry, with some companies welcoming the move as a necessary step to protect national security, while others, like Nvidia, have criticized the restrictions as an overreach that could stifle innovation and economic growth. As the incoming Trump administration prepares to take office, it remains to be seen whether the new AI rules will be enforced, and what impact they will have on the global AI landscape.