The U.S. Department of Commerce declared on Tuesday that it would forgo future sales to China of more sophisticated artificial intelligence processors.
The new regulations, according to the U.S. government, are meant to fill gaps that appeared when last year’s export limitations on AI chip products went into effect.
The Nvidia H100, which is the preferred chip for American AI companies like OpenAI, was not allowed to be sold under those earlier restrictions. Instead, Chinese businesses were able to purchase a version that is somewhat slower than the original dubbed the H800 or A800. This version conforms with U.S. rules mostly by slowing down the interconnect, an on-device connection speed.
Senior administration officials informed reporters in a briefing that the new regulations would also outlaw such chips.
The limitations might also apply to CPUs made by AMD and Intel. Other regulations will probably make it difficult for businesses like Applied Materials, Lam, and KLA to sell and export semiconductor production equipment to China.
The limits could cause American companies doing business in China to fear that the Chinese government will retaliate financially against them. The restrictions shut off a significant and expanding market for AI semiconductors.
According to U.S. Commerce Secretary Gina Raimondo, the purpose of the restrictions is to deny Chinese companies access to sophisticated semiconductors that could support technological advancements in artificial intelligence, particularly for military applications. According to American authorities, they are not meant to hinder China’s economic growth.
Source (CNBC)
