Nvidia stock (NVDA) fell as much as 3% early Monday after the Biden administration released an updated export rule aimed at controlling the flow of artificial intelligence chips to "adversaries" such as China.

Nvidia is cozying up to the incoming Trump administration after criticizing a new AI framework just announced by the Biden administration. The rules are meant to keep advanced chips and AI models under the control of the United States and its allies, but the President-elect will have the final decision on whether to enforce them.

Once reticent to get involved in policy debates, Nvidia issued a sharply-worded blog post criticizing Biden's sweeping new export restrictions on AI chips and other AI technology

Global data centers are filling up with GPUs and Nvidia has so far claimed an estimated 90% of that market share. Highly complex chips like GPUs are largely manufactured in Taiwan, but most of the companies that design them are based in the US and so their products are within the Department of Commerce's jurisdiction.

Nvidia (NVDA) on Monday quickly slammed newly released Biden administration rules to regulate chip sales to foreign countries.

The latest selloff in Nvidia and other chips stocks could prove short-lived, with the incoming Trump administration likely to take a more relaxed approach to AI controls.

Nvidia has some harsh words for the outgoing Biden administration and high praise for the upcoming Trump administration concerning AI. The Latest Tech News, Delivered to Your Inbox

Commerce Secretary Gina Raimondo says the US leads AI now - both AI development and AI chip design, and it's critical that we keep it that way

New rule threatens to squander America's hard-won technological advantage' says GPU supremo Nvidia has hit back at the outgoing Biden administration's AI chip tech export restrictions designed to tighten America's stranglehold on supply chains and maintain market dominance.