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Biden Administration Tightens AI Chip Export Restrictions To China – Crypto News

Published

1 year ago

March 30, 2024

Dripp

Amid the global scrutiny encountered by the newly emerging tech of AI (artificial intelligence), the Biden administration’s recent enhanced approach in barring AI chip exports to China nabbed global attention. Making it harder for the Chinese market to access U.S. AI chips and chipmaking tools, these revamped export curbs come as a measure to hamper Beijing’s chipmaking industry, stemming from U.S. national security solicitudes.

The Biden administration initially halted the export of AI chips designed by Nvidia to China in October last year, followed by several other tech giants facing a ban on such chip exports. This chronicle primarily emerges as Washington tightens its grip on Beijing’s AI sector amidst rising concerns over China in turn bolstering its military capabilities, which stages as a threat to the U.S.

Concerning this, the U.S. Bureau of Industry and Security (BIS) earlier said that semiconductor chips are used to “produce advanced military systems including weapons of mass destruction” and “commit human rights abuses,” aligning with the nation’s scrutinized approach towards chip exports to China.

Biden Administration’s Revamped Export Curbs: What’s The Scoop?

According to a recent report, the updated guidelines, noted to be 166 pages long, remains poised to come into effect starting Thursday. Primarily, these rules stress that the restrictions on AI chip export to China now engulf laptops containing these chips under its umbrella, marking it as a pivotal move.

Meanwhile, the nation’s Commerce Department, an entity governing export controls, revealed that it plans to constantly update the guidelines and restrictions on AI chip exports to China. This move further echoed a frenzy across the AI sector, although it came as a flipside to the Chinese market.

Conversely, despite the downturn faced by this export curb, China’s Shanghai recently revealed plans to set up a 100 billion yuan (US$13.8 billion) fund, scoping in on vital technologies that boost the economy. This encompassed start-ups in the domain of artificial intelligence, among many others. Nonetheless, China appears to be encountering a setback with AI prominencies such as NVIDIA and AMD facing an export ban on high-end AI chips without licenses.

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U.S. Barrs AMD & Nvidia AI Chip Export

Following the Biden administration’s ban on AI chip exports without apt licenses, Nvidia and its rival AMD promptly halted their exports, resulting in a hurdle for the Chinese market. However, reports reveal that despite these bans, the Chinese military acquired Nvidia’s chips, particularly the A100 and the more powerful H100 chips. This raised significant concerns over the challenges faced by the U.S. in completely cutting off China’s access to these advanced AI chips.

Meanwhile, with Nvidia unveiling its most potent AI chip to date, Blackwell, in GTC recently, the concerns over the Chinese military’s potential access to these AI chips have been burgeoning parallelly, ringing alarms nationwide.

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