iTWire - US to further tighten curbs on AI chip sales to China: report
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Wednesday, 28 June 2023 14:46
US to further tighten curbs on AI chip sales to China: report Featured
By Sam Varghese
Existing restrictions on AI chip sales by US corporations to China will be further tightened, the Wall Street Journal reports, claiming there are rising concerns over the technology being sold to US rivals.
The US Department of Commerce put export control measures in place last October which have yet to be fully codified.
But despite that, Washington could soon stop companies like Nvidia from selling chips to Chinese customers without first obtaining a licence.
In September 2022, the US ordered Nvidia and AMD to stop selling some of their products, that could be used in artificial intelligence, to China.
The curbs were on Nvidia's A100 and H100 integrated circuits — the latter was yet to be manufactured at the time — and any systems that included them.
At the time, an Nvidia spokesperson told iTWire: "The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China.
"The A800 meets the US Government’s clear test for reduced export control and cannot be programmed to exceed it."
Now it appears that the US wants to make even the purchase of these chips difficult.
The WSJ report said there were also moves afoot to restrict leasing cloud services to AI firms in China as they were being used to get around the restrictions on chip exports.
Also in the pipeline are laws that limit the extent of American investment in China and other countries considered to be geopolitical rivals.
Contacted by iTWire, an Nvidia spokesperson declined to comment.
However, Bloomberg quoted Nvidia chief financial officer Colette Kress as telling an online investor event on Wednesday that the company was aware of the reports on tighter restrictions.
She added that the strong overall demand meant there would be no material impact to earnings should such rules be introduced.
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