WASHINGTON (Diya TV) — NVIDIA has called out the Biden Administration’s proposed “AI Diffusion” rule a sweeping new regulation aimed at cutting off the worldwide flow of high-end AI chips and technology. The rule, to come into effect in 120 days, seeks to limit access to U.S.-developed computing resources to curb rivals like China from leveraging cutting-edge AI capabilities.

In a statement, Ned Finkle, a vice president of government affairs at NVIDIA, dismissed the decision as “misguided and unprecedented,” saying it could also stifle innovation and economic growth. “Leadership in computing and software ecosystems has been a cornerstone of American strength and influence worldwide,” said Finkle, who argued that the rule undermines the competitive environment that has historically driven U.S. technological advancement.

The 200-page regulation is part of a broader strategy for maintaining national security and imposes stringent controls on the export of AI-related semiconductors and software. It introduces new initiatives to use AI for cyber defense and bolster critical infrastructure.

Critics, including venture capitalist Marc Andreessen, criticized the administration’s approach to AI oversight. Andreessen recently revealed in a podcast that government officials were discouraging investments in AI startups.

This also happens as Meta Chief Executive Mark Zuckerberg recently claimed in an episode of Joe Rogan’s podcast that the administration has been forcing the company to filter content related to COVID-19 vaccines, another issue that contributes to the discussion on the limits of the government’s regulatory reach.

The proposed rule regarding AI adds pressure to the current tensions between the U.S. and China; NVIDIA and many other industry heads have warned about measures they thought would erode America’s technological edge