The federal government is considering placing additional limits on exporting strong computing chips to China, which power AI models, according to the Wall Street Journal. This would have an effect on Nvidia and AMD, both of which make strong processors employed for Artificial Intelligence. The Biden administration has already implemented stricter controls, compelling Nvidia to make a weakened version of its flagship A100 for China, however, the current rules being contemplated do not even accommodate that weakened chip.
In early trading, stocks of Nvidia and Advanced Micro Devices both dropped by more than 2% following reports that the federal government is thinking of imposing fresh export restraints on chips utilized in artificial intelligence computing for China. These controls planned by the Commerce Department would add to the U.S. government's prior restriction on the computing power of chips made for the Chinese market, which affected Nvidia and AMD. Other chipmakers were also affected to different extents by the statement, with Marvell and Broadcom trading down below 1%, while Qualcomm declined over 2%. Nvidia had already responded to the preceding limit by creating a chip with lower specs for the Chinese sector. But under the new regulations currently being established, the A800 chip also would have to be licensed for export, the Journal reported. These limitations would additionally apply to firms furnishing cloud computing services, which have been used by several companies to avoid export rules, as indicated in the Journal.
Discussions between Google and the European Union concerning the regulation of artificial intelligence are reported to be productive, according to the web giant's cloud boss. Former Google CEO Eric Schmidt has warned of a potential chaotic situation in the voting process due to A.I. technology. Moreover, stocks of Chinese AI firms have endured declines after the U.S. reportedly contemplated restrictions on chip exports.
Google is in discussions with the European Union regarding A.I. regulations, according to the search giant's cloud boss. Former CEO Eric Schmidt has warned that elections will be chaotic due to A.I., and Chinese A.I. stocks have dropped as the United States reportedly contemplates restrictions on chip exports.
The competition between the U.S. and China over hardware and software technology has intensified in recent years. Cybersecurity threats posed by Chinese state-backed actors have been identified by key U.S. authorities as one of the major national security risks encountered by the U.S. Allegedly, American companies have had their sensitive technology stolen to benefit Chinese domestic competitors, manifesting in methods such as industrial espionage and joint-venture projects, whereby U.S. companies are required to join forces with Chinese firms to do business within China. This has further deepened the existing trade tensions between the two countries. Furthermore, any additional chip export restriction could heighten this discord. U.S. government officials have been striving to avert potential impacts, but such steps could jeopardize these attempts. Secretary of Commerce Gina Raimondo held a meeting with her Chinese counterpart in Beijing this year in a bid to counter this. Nvidia, the Bureau of Industry and Security (the Commerce Department's export control unit) and AMD (which did not immediately answer a request for comment) all kept mum on the subject.
Correction: According to The Wall Street Journal on Tuesday, the federal government is considering imposing tighter restrictions when it comes to exporting powerful computing chips to China, which are used in AI models. An earlier version of this article misspoke the day.
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