July 21, 2024
US Expands Limits to Middle East and China

Global AI Chip Trade War Escalates: U.S. Limits Extend to Middle East, China

According to Nvidia’s most recent quarterly report, American regulators have requested a restriction on the export of artificial intelligence (AI) processors to some Middle Eastern countries. In the report published on August 28, the business stated that the new laws have an impact on its A100 and H100 chips, which increase the pace of machine-learning operations. Nvidia does not indicate which Middle Eastern nations are affected.

According to a Reuters article, Advanced Micro Devices (AMD), a direct rival of Nvidia, also received a letter from U.S. regulators asking for the same ban on high-level AI chip exports to select Middle Eastern nations.

According to Nvidia’s quarterly report, the new regulatory filing won’t have an immediate material impact on the company’s operations and doesn’t account for a “meaningful portion” of its sales. However, it said in a different statement that it is collaborating with the American authorities to resolve the issue.

The continuous export restrictions on AI chips that the United States government has imposed on China were mentioned in the quarterly report. Nvidia claimed that despite prior restrictions, they were still able to sell substitute goods in China, such as their less potent A800 or H800 chips. However, the business cautioned that long-term outcomes would be harmed if it was effectively excluded from all or part of China. The U.S., China, and Taiwan accounted for the majority of its $13.5 billion in sales during the most recent fiscal quarter that ended on July 30, with the total sales of all other nations accounting for just 13.9%.

The Biden administration began enforcing initial export restrictions in October 2022 in an effort to keep China away from potent microchip chips.

On June 29, representatives from Washington stated that they are thinking of tightening limits on AI chip shipments to China even more and reducing the computational capability of chips to stifle the flow of chip availability in the Chinese market.

The Chinese government announced that it will regulate the export of gallium and germanium products, which are essential building blocks for the creation of AI chips, in response to the U.S. government’s actions.

The United States’ AI-related laws and restrictions have prompted other nations to think about where they stand in the race to create potent systems.

Image by freepik

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