The outgoing Biden administration has introduced the Final Rule on Artificial Intelligence Diffusion, a set of stringent restrictions designed to limit the export of AI-focused chips to most countries. The new regulation, however, offers exemptions for key allies and partners.

The White House's aim is to collaborate with AI companies and foreign governments to establish critical security and trust standards as they develop their AI infrastructure. The policy emphasises "enhancing US national security and economic strength" and highlights the importance of ensuring "the world's AI runs on American rails."

The rules specifically target the transfer of weights for advanced "closed-weight" AI models to non-trusted countries and set forth security standards to protect these weights. Nvidia, a leading GPU manufacturer, has strongly criticized the proposed rules, arguing that they could severely impact their operations.

In a document released by Nvidia, the company slammed the decision, voicing concerns over the potential harm to its business. Nvidia has been vocal about the adverse effects these restrictions could have on the global supply chain and their market dominance.

However, it might be that Nvidia finds itself in a difficult situation this year under the coming Trump administration which is likely to take the policy even further.