The Biden administration's proposed "Export Control Framework for Artificial Intelligence Diffusion" has created waves in the tech sector, particularly affecting Nvidia (NVDA). The framework aims to limit the export of AI technologies and GPUs to countries not considered "trusted" by the US, raising concerns about potential disruptions in GPU supply chains and increased operational costs. Industry leaders, including Oracle, have criticized the move, warning that it could significantly reduce the global chip market for US firms and inadvertently benefit Chinese competitors. The policy's stringent licensing requirements and export caps based on computing power have sparked fears of strained international partnerships and hindered global AI collaboration.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) saw a rise of 1.49% to $23.89 as of 5:40 PM on Wednesday, January 8.