US Mulls Even Tighter Restrictions to Stop AI Chips From Reaching China

pcmag.com:

The US is considering even harsher export restrictions to prevent China from obtaining cutting-edge chips used to power AI programs. 

The US Commerce Department could implement the new export controls as soon as next month, according(Opens in a new window) to The Wall Street Journal, which cites sources familiar with the matter.  

It looks like the new rules will try to plug the gaps in the Biden administration’s existing attempts to stop the chips from reaching the country. For example, the revamped regulations would block Nvidia’s A800 chip to China—a GPU the company nerfed so it could sell it in China.

In October, the Commerce Department enacted the first set of export controls to stop companies from shipping advanced processors  to China. The rules require both US and foreign companies to apply for a license before exporting the technology to the country. In addition, most applications “will be reviewed under a presumption of denial” since the US is concerned the chips could bolster the Chinese military and help the country build advanced supercomputers.  

The export controls are already affecting Nvidia, which makes the A100 and H100 GPUs used to power generative AI programs such as ChatGPT. But there are signs Nvidia is still sending massive GPU shipments to Chinese companies, including TikTok parent ByteDance and Alibaba. One Chinese publication claims(Opens in a new window) that ByteDance placed a $1 billion order for Nvidia’s GPUs, despite the US export controls.

The Biden administration acts as ChatGPT and other generative AI programs from US companies have exploded in popularity. That’s given the US a technological edge in an emerging computing sector, although Chinese companies are already working on their