US considers tightening restrictions on AI chip exports

U.S. Officials Considering Stricter Measures on Exports to China

U.S. officials are considering stricter measures on a regulation on exports that was designed to reduce the supply of artificial intelligence (AI) chips to China.

Sources near to those in authority have indicated that the more stringent regulations will involve controlling the amount of computing power in chips that are shipped overseas. It is said that revisions to the rules may be announced by the end of July.

The imposition of limits on the sale of powerful computing chips has caused some of the industry’s main players to be worried.

At an investors’ conference on June 28, Colette Kress, the Chief Financial Officer of Nvidia – one of the world’s leading chip manufacturers – made a remark that:

Kress indicated that the implementation of such regulations would not have an “immediate effect” on the company’s financial results. In late May, Nvidia’s stock price soared, briefly pushing it to a value of $1 trillion.

Cointelegraph contacted the U.S. Department of Commerce to gain additional insight into their possible decision.

Animoca Brands CEO believes there is a “symbiotic relationship” between AI and blockchain.

Effects of U.S. Sanctions in China

In October 2022, the U.S. President Joe Biden’s administration issued restrictions against the sale of AI chips to China in order to impede the growth of the semiconductor sector.

In October, Chinese developers were denied access to some of the most advanced chips available, such as Nvidia’s A100 chips and the newest H100 model. These two chips are highly desirable for those working in the field of artificial intelligence.

In May, Nvidia announced that their second-quarter revenue would be 50% higher than what the market had predicted, and their company shares had increased by 28%.

At approximately the same time, the firm unveiled further AI-enabled tools, such as an AI supercomputer it designed to help coders make ChatGPT successors.

In China, meanwhile, developers are striving to circumvent the effects of U.S. sanctions. It is reported that businesses are researching new ways to construct AI chips with less powerful semiconductors and a combination of presently-available chips.

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