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Nvidia Warns U.S. GAIN AI Act Could Harm Competition, Echoes AI Diffusion Rule

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Nvidia criticized the proposed GAIN AI Act on Friday, warning that it would restrict global competition and hurt the U.S. economy much like last year’s AI Diffusion Rule, which limited the export of high-performance chips.

The Guaranteeing Access and Innovation for National Artificial Intelligence Act, introduced as part of the National Defense Authorization Act, would require AI chipmakers to prioritize domestic orders before fulfilling foreign contracts. Exporters would also need licenses to ship chips above certain performance thresholds, specifically processors rated 4,800 or higher in total computing power.

In a statement, Nvidia argued the law addresses a non-existent issue:

“We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips.”

The Act mirrors the AI Diffusion Rule enacted under President Joe Biden, which rationed computing capacity among allies while cutting off rivals like China. Both measures reflect Washington’s effort to secure U.S. access to advanced silicon and limit China’s AI capabilities, particularly amid concerns about its military applications.

The debate comes just weeks after President Donald Trump struck a deal with Nvidia allowing the company to resume certain AI chip exports to China in exchange for the U.S. government receiving a cut of sales—an unprecedented arrangement underscoring the geopolitical stakes around advanced semiconductors.

If enacted, the GAIN AI Act could reshape the global AI hardware supply chain, tightening U.S. control over who gets access to the most powerful chips.

Poland Hopes for AI Chip Export Restrictions to Be Lifted Under Trump

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Poland is optimistic that the Trump administration will reverse the AI chip export restrictions imposed during the final days of President Joe Biden’s tenure. Dariusz Standerski, Poland’s deputy digital minister, expressed hopes on Wednesday that these restrictions, which limit Poland’s access to U.S.-designed AI chips, may be lifted under the new leadership.

The law, which was implemented by the Biden administration, categorized countries into three tiers. While 18 nations, including Japan, Britain, and France, were largely exempt from the restrictions, Poland and 120 other countries faced strict caps. Countries like Russia, China, and Iran were entirely barred from receiving the technology. Standerski criticized the decision, calling it “irresponsible” and stating that the Biden administration failed to provide a clear explanation for Poland’s placement in the second tier.

However, Standerski noted that Poland’s dialogue with the Trump administration had been “very constructive,” and he believes there is a “big chance” that Poland could be moved to the first tier, which would provide it with unrestricted access to the technology. Ongoing consultations are expected to last until May 15.

In addition, Poland’s Deputy Prime Minister Krzysztof Gawkowski discussed the potential rollback of these restrictions with U.S. Vice President JD Vance at the AI Action Summit in Paris last month. Tech groups, including Microsoft, have also urged the Trump administration to ease these restrictions, advocating that such measures should not be extended to U.S. allies.

Furthermore, the European Commission has voiced support for the idea, stating that the EU should be able to access advanced AI chips from the U.S. without limitations.

Trump Reverses Biden’s Executive Order on AI Risk Mitigation

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U.S. President Donald Trump on Monday revoked an executive order signed by former President Joe Biden in 2023, aimed at addressing the risks associated with artificial intelligence (AI). The order, which required AI developers to disclose safety test results for AI systems with potential risks to national security, the economy, public health, or safety, has been a point of contention as it came at a time when Congress had yet to pass comprehensive AI regulation.

Key Points:

  • Revocation of Biden’s Executive Order: Trump’s decision to revoke Biden’s 2023 executive order dismantles the framework that sought to introduce safety protocols for AI development. Biden’s order mandated AI developers to provide test results for high-risk AI systems to the U.S. government before they were made public, underlining concerns over national security and public safety.
  • Republican Stance on AI: The 2024 Republican Party platform had previously called for the repeal of Biden’s order, citing its potential to stifle AI innovation. The platform emphasized that AI development should be grounded in principles of free speech and human flourishing, aligning with Trump’s decision.
  • Risks and Opportunities in AI: While AI, particularly generative AI, has generated both excitement and concern due to its potential to automate tasks and disrupt industries, there are also fears about its consequences on jobs and security. The rapid advancements in AI technologies, such as those capable of creating text, images, and videos, have raised alarms about unforeseen risks.
  • Recent Developments in AI Oversight: Just last week, the U.S. Commerce Department introduced new restrictions on AI chip and technology exports, drawing backlash from tech companies like Nvidia. While Trump revoked Biden’s order concerning AI safety protocols, Biden’s administration has not yet fully relaxed its regulatory approach, as seen in a separate executive order aimed at supporting energy needs for AI data centers.