NVIDIA reveals new US government rule restricting export of AI chips to China and Russia

The US government introduced and immediately began enforcing a new rule that would limit the export of supercomputer and artificial intelligence computer chips to Russia and China. NVIDIA has announced in an SEC filing that the government has notified the company of the new licensing requirement affecting one of its current (A100) and one of its upcoming (H100) GPUs designed to accelerate machine learning tasks .

The government has apparently told NVIDIA that the new license requirement will address the risk that the affected products could be used for military purposes by both countries. As The New York Times Notes, AI and machine learning are used for various applications including weapon development and surveillance. This was announced by a spokesman for the US Department of Commerce Reuters:

“While we are not currently in a position to outline specific policy changes, we are taking a comprehensive approach to implement additional measures needed in terms of technologies, end uses and end users to advance U.S. national security and foreign policy interests.” protection. “

This requirement follows another export control rule enacted in mid-August that would prevent China from accessing advanced chip design software needed to manufacture the next-generation processors.

NVIDIA admitted in its filing that the restriction could affect its ability to complete development of the H100 chip. It doesn’t sell its products in Russia, but it expects to earn about $400 million from sales to Chinese companies in the fiscal third quarter. That’s money it could use to develop future products. The chipmaker could lose all of those potential sales if its Chinese customers refuse to buy its alternative offerings or if the government refuses to license its biggest customers.

As for AMD, a spokesman said Reuters that while the new licensing requirement will prevent the company from exporting its MI250 chips to China, it doesn’t believe it will have a major impact on its business.

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https://www.engadget.com/nvidia-government-rule-restricting-export-ai-chips-china-russia-061846437.html?src=rss NVIDIA reveals new US government rule restricting export of AI chips to China and Russia

Russell Falcon

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