Nvidia has released a critical statement regarding the Biden administration’s new AI chip export restrictions.

The company characterized these restrictions as misguided and an attempt to rig the market, which could stifle innovation and economic growth.

“The Biden Administration now seeks to restrict access to mainstream computing applications with its unprecedented and misguided ‘AI Diffusion’ rule, which threatens to derail innovation and economic growth worldwide,” said Ned Finkle. Translation: “Biden administration is limiting access to important computing applications with its misguided rules, which risk halting innovation and economic growth worldwide.”

Finkle also voiced skepticism about whether the new regulations would even meet their intended goals.

He expressed concerns that rather than reducing any threats, they might weaken America’s global competitiveness. The restrictions target the sale of AI GPUs to various countries, particularly aimed at China.

In a related statement, Oracle’s Ken Glueck remarked that the new export regime may achieve extreme regulatory overreach rather than protecting U.S. interests, stating it could hinder U.S. technological leadership.

Nvidia’s comments also seem to be an approach to curry favor with the incoming President, suggesting that the previous administration laid a foundation for the success in AI that the current policies risk jeopardizing.

The blog post adds that while there will be tight restrictions for many countries, key U.S. allies will not face any limitations, allowing certain chip orders to proceed without a license.