US export ban on advanced AI chips to push China’s access to technology

The US government’s efforts to restrict shipments of high-performance chips to China by Nvidia and Advanced Micro Devices (AMD) have heightened tensions between the countries over technology and security. The chips are designed to run artificial intelligence applications and power data centers, and the sanctions will affect Chinese companies’ capabilities in advanced technologies such as image and speech recognition. Nvidia’s A100 and H100 integrated circuits and AMD’s MI250 will be hit by the requirements.

The US has recently stepped up efforts to stem the flow of advanced technology to China by banning the export of some advanced chips and tools made by American chipmakers. The order underscores the tension between the two countries over access to advanced chip technology.

According to Reuters, some national security experts saw the US move as a long time coming. GPUs are “totally unregulated for China and Russia, so I see this action in many ways as where the controls should be if we’re really serious about trying to slow down China’s AI growth,” Emily Kilcrease, a senior fellow at the Center for a New American Security, said in the report. .

Nvidia confirmed on Thursday that the restrictions will cover its A100 and upcoming H100 integrated circuits. AMD’s MI250 chip will also be affected by the new requirements. The chipmakers’ shares fell after the announcement, and the Philadelphia Semiconductor Index fell 2.18 percent.

After Nvidia declared US officials have authorized it to fulfill orders for the chips through its Hong Kong facility for a year.