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US Considers New Restrictions on Export of AI Chips to China

According to the new restrictions, the agency would prohibit the selling of even A800 chips to China without a specific US export license.

The Wall Street Journal reported on Tuesday, citing people with knowledge of the situation, that the US is exploring further limitations on the export of AI chips to China. Shares of Advanced Micro Devices (AMD) plummeted roughly 1.5% while those of Nvidia fell more than 2% in response to the news.

According to sources, the Commerce Department would stop exporting chips made by Nvidia and other chip manufacturers to Chinese consumers as early as July. Among the US chipmakers caught in the crossfire between China and the US administration are Nvidia, AMD, and Micron.

Nvidia claimed in September that US officials had requested the company cease sending two of its top processing processors to China for use in artificial intelligence projects.

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Months later, Jensen Huang-led Nvidia announced it will provide a brand-new cutting-edge processor named the A800 in China in order to comply with export regulations. In order to comply with laws, the business also made early this year adjustments to its flagship H100 chip.

According to the new announcement, the new restrictions the agency is considering would prohibit the selling of even A800 chips without a specific US export license.

Despite export limitations put in place by the United States, Chinese sellers are profiting from the soaring demand for high-end Nvidia chips, particularly the A100 artificial intelligence (AI) chips. The A100 chips, created by US chip company Nvidia, are reportedly offered for a stunning $20,000 per unit, which is double the standard price.

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Sahil Pawar
Sahil Pawar
I am a graduate with a bachelor's degree in statistics, mathematics, and physics. I have been working as a content writer for almost 3 years and have written for a plethora of domains. Besides, I have a vested interest in fashion and music.


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