Nvidia Halted From Shipping AI Chips To China
The US has directed Nvidia to immediately cease shipments of its high-end artificial intelligence (AI) chips to China. This abrupt action, initially slated to take effect 30 days after October 17, has been fast-tracked for reasons Nvidia hasn’t disclosed. The move aligns with President Biden’s broader strategy to prevent countries, notably China, from acquiring such AI chips.
Despite the sudden shift, Nvidia remains optimistic. In a statement to the US Securities and Exchange Commission, they highlighted the robust global demand for their products, suggesting they don’t foresee a significant financial setback in the near term.
These new curbs focus on Nvidia’s AI chips, which were designed for the Chinese market in line with earlier regulations. The decision escalates the ongoing tech standoff between the US and China. In a previous encounter, China lambasted the US for imposing chip restrictions, emphasizing that it undermines the principles of a fair market economy.
The US counters this argument, asserting that the curbs are essential to hinder China from harnessing cutting-edge tech that could amplify its military AI capabilities. Meanwhile, Nvidia’s prominence in the market has soared, with its stock value tripling. The company recently celebrated a milestone, joining the elite $1 trillion market valuation club.
As the situation unfolds, other major players remain silent. Chip manufacturer AMD has yet to release a statement on the accelerated restrictions, and the US Department of Commerce refrained from commenting when approached by the BBC. Read full article here.
