US blocks sales of some AI chips to China as tech crackdown intensifies

Chip designer Nvidia stated that US officers instructed it to cease exporting two high computing chips for synthetic intelligence work to China, a transfer that might cripple Chinese language companies’ skill to hold out superior work like picture recognition.

The corporate on Wednesday stated the ban, which impacts its A100 and H100 chips designed to hurry up machine studying duties, might intervene with completion of growing the H100, the flagship chip Nvidia introduced this 12 months.

Nvidia stated US officers instructed it the brand new rule “will tackle the chance that the coated merchandise could also be utilized in, or diverted to, a ‘navy finish use’ or ‘navy finish consumer’ in China.”

Requested for remark, the US division of Commerce wouldn't say what new standards it has laid out for AI chips that may not be shipped to China however stated it's reviewing its China-related insurance policies and practices “maintain superior applied sciences out of the unsuitable arms.

“Whereas we aren't able to stipulate particular coverage modifications presently, we're taking a complete strategy to implement extra actions crucial associated to applied sciences, end-uses, and end-users to guard US nationwide safety and international coverage pursuits,” a spokesperson instructed Reuters.

The announcement alerts a serious escalation of the US crackdown on China’s technological capabilities as tensions bubble over the destiny of Taiwan, the place chips for Nvidia and virtually each different main chip agency are manufactured.

A spokesperson for rival AMD instructed Reuters the corporate had obtained new license necessities that may cease its MI250 synthetic intelligence chips from being exported to China, nevertheless it believes its MI100 chips is not going to be affected.

With out American chips from corporations equivalent to Nvidia and AMD, Chinese language organisations can be unable to cost-effectively perform the sort of superior computing used for picture and speech recognition, amongst many different duties.

Picture recognition and pure language processing are widespread in client functions like smartphones that may reply queries and tag images. Additionally they have navy makes use of equivalent to scouring satellite tv for pc imagery for weapons or bases and filtering digital communications for intelligence-gathering functions.

Nvidia stated it had booked $400m in gross sales of the affected chips this quarter to China that might be misplaced if Chinese language companies resolve to not purchase different Nvidia merchandise. It stated it plans to use for exemptions to the rule however has “no assurances” that US officers will grant them.



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