Biden plans final push to limit Nvidia advanced chip exports: Report

President Joe Biden is reportedly planning one last artificial intelligence chip restriction that would hit major companies, including the second most valuable in the world, Nvidia. It’s his final push to control the spread of U.S. made chips to China and Russia before leaving office.

According to Bloomberg, the restrictions are expected to have a broad and expansive impact. The U.S. is trying to restrict advanced chip sales to data centers in entire countries and specific companies.

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Bloomberg sources say the goal is to concentrate AI development in allied nations, and urge global businesses to center on American standards. Bloomberg said the regulations could be announced as soon as Friday, Jan. 10, and would come in a three-tier system, granting virtually unlimited access to American chips for key allies, while adversaries would be largely cut off.

Most other countries would face limits on total computing power, though higher caps could be granted if they agree to certain U.S. standards.

Nvidia is naturally at the center of this back and forth. The U.S. previously banned the company from shipping its most high-tech products to China in 2022. After the U.S. expanded those curbs, China hit Nvidia with an antitrust investigation last month. Now, the company tells Bloomberg it objects to Biden’s latest proposal.

“A last-minute rule restricting exports to most of the world would be a major shift in policy that would not reduce the risk of misuse but would threaten economic growth and U.S. leadership,” a spokesperson for Nvidia said.

Nvidia’s China revenue has already taken a hit over past restrictions. It’s gone from around a quarter of total revenue to 10%-15% in recent years.

The Commerce Department, which is in charge of chip export controls, has yet to comment on Bloomberg’s report.