Nvidia stock declines as US updates export rules for AI chips

Nvidia's stock dropped by 3% after the Biden administration announced new export rules for AI chips. The updated regulations limit most countries to ordering 50,000 GPUs without a special license, while smaller orders are exempt. The new rules aim to prevent smuggling and enhance AI security, addressing loopholes from previous restrictions. Notably, 18 US allies, including the UK and Taiwan, will not face these limits. Nvidia criticized the rule for being created without proper review and claimed it could harm competition and innovation. The company has 120 days to comment on the restrictions before they take effect in one year.