Nvidia's AI Accelerators For China Under US Government Scrutiny

In a recent announcement, U.S. Commerce Secretary Gina Raimondo revealed an ongoing scrutiny of three novel artificial intelligence (AI) accelerators being created by Nvidia Corp NVDA for the Chinese market.

What Happened: As per a Bloomberg report on Dec. 11, 2023, every aspect of the new chips is being examined by the U.S. to ensure no breach of export controls, according to Raimondo.

She affirmed, “We look at every spec of every new chip, obviously to make sure it doesn't violate the export controls.”

"We talk to Nvidia regularly, and I should say they're a good partner," she added.

The Santa Clara-based Nvidia is crafting these chips specifically for China, abiding by the stringent export guidelines set by the U.S. government. These new processors align with the stricter China guidelines announced by the Commerce Department earlier this fall, as confirmed by Nvidia CEO Jensen Huang.

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Earlier this month, Raimondo indicated that the US government plans to tighten controls further to curtail any technological advantage to Beijing. Responding to these remarks, Nvidia stated it is adhering to the US government’s explicit rules while aiming to deliver compliant data center solutions to clients globally.

The Commerce Department did not disclose its intentions to restrict Nvidia’s new chips but emphasized its resolve to keep updating rules in response to emerging threats.

Why It Matters: This development is significant in the backdrop of previous resistance from major American chip firms, including Nvidia, to the Biden administration’s efforts to impose additional restrictions on semiconductor sales to China. In October, these companies argued that such regulations could inadvertently boost China’s independent chip industry while harming their businesses.

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