Nvidia headquarters in Santa Clara, California.

The U.S. has imposed new restrictions on the export of AI chips to China

These new restrictions are to prevent the export of chips that enable Chinese companies to develop advanced artificial intelligence capabilities, and were originally set to take effect in mid-November.

The U.S. is escalating its semiconductor war with China and has imposed new restrictions on the export of AI chips to the country, about three weeks before it originally planned to, according to a statement released last night by tech company NVIDIA, the party primarily impacted by the new restrictions.
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מטה אנבידיה בסנטה קלרה קליפורניה
מטה אנבידיה בסנטה קלרה קליפורניה
Nvidia headquarters in Santa Clara, California.
(Credit: Nvidia/Reuters)
On October 17, the Biden administration informed NVIDIA that new export restrictions on AI chips to China would take effect within 30 days. These restrictions are an extension of the restrictions imposed on the export of high-performance chips to China a year ago, which led NVIDIA to develop two specialized chips for the Chinese market, A800 and H800. This met the restrictions' criteria and allowed the company to continue exporting profitable AI chips to China. The new restrictions are aimed at preventing the export of these chips, which enable Chinese companies to develop advanced artificial intelligence capabilities, as well as similar chips developed by Intel and AMD.
Although the new restrictions were originally scheduled to take effect in mid-November, NVIDIA announced last night that the U.S. government informed them that they would be implemented immediately. The company did not explain why the government decided to expedite the timeline and stated that it does not expect them to have an immediate impact on its revenue.
Intel, which began selling its Gaudi 2 AI chip in China in July last year, stated in response to Reuters, "We are evaluating the regulation and assessing its potential impact." AMD and the U.S. Department of Commerce did not respond to the report.