NVIDIA's CEO is apparently demanding that the Trump administration rethink its approach to the AI Diffusion rule, claiming that the export controls have transformed China into a direct rival.
NVIDIA's CEO Says President Trump Should Prioritize American Businesses; Harsh Policies Will Put the US In a Tough Spot
Well, it seems like the US administration is going to make one of the most important decisions when it comes to safeguarding America's position as the dominant AI force. For those unaware, the AI Diffusion policy, initially introduced by the Biden administration, is set to go into implementation by May 15, and it is reported that the current government plans to change the policy, as reported earlier. Now, in a brief meeting with the press, NVIDIA's Jensen Huang has demanded that the Trump administration prioritize the sustainability of American businesses:
We need to accelerate the diffusion of American AI technology around the world. The policies and encouragement from the administration really need to support that.
I’m not sure what the new diffusion rule is going to be, but whatever it turns out to be, it really has to recognize that the world has changed fundamentally since the previous diffusion rule was released.
- NVIDIA's CEO via Bloomberg
For those unaware, the AI Diffusion rule initially divided global nations into different tiers, each coming in with varied restrictions. Now, it is claimed that the Trump administration plans to change the policy in order to use AI hardware as a "negotiating tool" for the tariff deal. The government is rumored to implement a licensing scheme, which means that countries looking to access cutting-edge AI chips from the US would need a license. Ultimately, this will allow the Trump administration to nitpick which country they would want AI chips exported to.
With this policy being implemented, it is clear that companies like NVIDIA will suffer a lot, given that their market presence in "unfavoured regions" by the US will be reduced dramatically, and this includes China as well. NVIDIA's CEO also said that China is growing to be a formidable rival through the innovations driven by Huawei in the AI segment has positioned the nation to produce cutting-edge chips using in-house resources.
Nothing is official for now, but given that the policy's deadline is approaching soon, we are expected to see a formal announcement on the AI Diffusion rule in the coming days.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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