While investors are curious about the Trump administration’s release of its new rule on AI diffusion, Nvidia CEO Jensen Huang has issued a warning that America needs to hurry its worldwide expansion of AI or the US may lose ground to China, as per a report.
Donald Trump’s AI Policy in the Spotlight
With the White House planning to release its new AI policy on May 15, Silicon Valley’s tech leaders have discussed the policies with US president Donald Trump, suggesting he make some changes, according to The Street.
The former US president Joe Biden had started the AI diffusion rule before leaving office in January this year, tech leaders have voiced out their concerns that its restrictions on who they can sell AI chips to could compromise their company’s growth, as per the report. The White House had justified its move as a necessary step to protect US national security by preventing deals with hostile nations, but much of Silicon Valley remained unconvinced, as per the report.
But, since US president Donald Trump started his second term, both he and vice president JD Vance have shown support for policies directed toward boosting AI growth, and have indicated that they believe less regulation is necessary, reported The Street.
Jensen Huang’s Call for Global AI Diffusion
Huang also voiced out his take on AI policy, by saying, “We need to accelerate the diffusion of American AI technology,” adding that he saw this as being necessary on a global scale, as quoted in the report.
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According to him, the Trump administration’s policies must support AI diffusion as a global necessity that extends far beyond the United States, reported The Street.
The Nvidia CEO said, “I’m not sure what the new diffusion rule is going to be, but whatever it turns out to be, it really has to recognize that the world has changed fundamentally since the previous diffusion rule was released,” as quoted in the report.
He also mentioned that he believes China’s AI growth has started to reach close to the United States level in terms of tech market dominance, citing the example of Huawei as it has planned to start testing its latest AI chip, which may be even more powerful than Nvidia’s chips, as per the report.
Huang emphasized that, “China is right behind us,” and added that it is “very, very close” to catching up with the US and also mentioned that the country needs to take action to remain at the top of the global AI market, reported The Street.
FAQs
Why is Jensen Huang concerned about the new AI policy?
Huang fears that the current regulations may limit global sales of AI chips, hampering US companies’ growth and giving China an opportunity to catch up in AI tech.
What will happen on May 15?
On May 15, the Trump administration will reveal its updated AI diffusion rule, a major development that could shape the future of US AI regulation.
