Why Biden Is Rushing to Restrict AI Chip Exports
TimeJAN 19
Trump to Scrap Biden's AI Chip Export Controls
Above: U.S. President Donald Trump (left) and Jensen Huang, co-founder and CEO of AI chipmaker Nvidia Corp., in the Cross Hall of the White House in Washington, D.C., U.S., on Wednesday, April 30, 2025. Image copyright: Ken Cedeno/Contributor/UPI/Bloomberg via Getty Images
The Spin
Narrative A
This is a smart move that will bolster U.S. AI leadership. NVIDIA and industry leaders warned Biden's restrictions would harm economic interests and global competitiveness, which is where the industry was headed. By easing controls, Trump has chosen to foster innovation, which supports initiatives like TSMC's $100B Arizona investment that creates 40,000 jobs. U.S. manufacturing and AI dominance will surge now, ensuring America stays ahead in the tech race
Narrative B
Biden's AI chip export controls beyond enemies like China were critical for U.S. security and AI leadership. By capping access for 120 countries, they blocked China's smuggling through third parties and curbed proliferation to adversaries like Iran. The tiered system preserved U.S. dominance by limiting global access to advanced chips. Reversing these for nations like Saudi Arabia risks diversion and undermines America's edge.