Leading chip designing company, Nvidia, has revealed that officials in the US have told it to discontinue the export of two top computing chips for artificial intelligence work to China.
This move is bound to hamper the ability of Chinese firms to develop advanced technology.
Read on to find out all the details!
NVIDIA Corp Ordered Not To Export Chips To China
Nvidia Corp (NVDA.O) is one of the leading computer chip designing company, claimed that U.S. officials ordered it to stop exporting two of the best computing chips for artificial intelligence work to China.
This shows a significant uptick in the U.S. crackdown on China’s technological prowess as unrest over Taiwan’s future, where Nvidia and nearly all other major chip companies get their chips, grows.
After hours, shares of Nvidia dropped 6.6%. The business claimed that the ban, which applies to its A100 and H100 processors made to accelerate machine learning activities, could obstruct the development of the H100, the company’s flagship chip that it unveiled this year.
New Law To Check If Products Being Diverted Or Utilised For Military Purpose In China
After hours, shares of rival Advanced Micro Devices Inc (AMD.O) decreased 3.7%. A representative for AMD stated that the company had received additional licence requirements that would prevent the export to China of its MI250 artificial intelligence chips, but that it did not anticipate any impact on its MI100 chips. According to AMD, the new regulations won’t have a significant effect on its operations.
According to Nvidia, U.S. officials have assured it that the new law will address the possibility of products being diverted or utilised for military purposes in China.
A spokesperson has confirmed, “While we are not in a position to outline specific policy changes at this time, we are taking a comprehensive approach to implement additional actions necessary related to technologies, end-uses, and end-users to protect U.S. national security and foreign policy interests.”
In order to “keep advanced technologies out of the wrong hands,” the U.S. Department of Commerce said it is evaluating its China-related rules and procedures. It would not specify what new standards it has set for AI chips that cannot be transferred to China.
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