U.S. Tightens China’s Access to AI Chips
- By Paul Mah
- October 18, 2023
The United States government this week announced tightened restrictions designed to stymie China’s ability to push ahead in supercomputing and AI.
The new rules will halt most shipments of advanced semiconductors to Chinese data centers while mandating chip firms to report certain orders of more powerful chips.
No more A800, H800
The new rules will restrict the sales of Nvidia’s A800 and H800 GPU specifically redesigned for the Chinese market. Nvidia released these less sophisticated variants of the A100 and H100 for the Chinese market to get around the U.S. export controls.
Processors meant for consumer products like laptops, smartphones, and gaming systems will be exempt from the new curbs. However, companies will need to tell the US Commerce Department when they are filling orders for the most powerful consumer chips.
The rules are expected to be updated at least annually.
While the US maintains that it is protecting its national security, others see it differently.
According to Gregory Allen, director of the Wadhwani Center for AI and Advanced Technologies at the Center for Strategic and International Studies – a think tank – the restrictions are industry-agnostic and aim to prevent China from ever matching U.S. capabilities.
This latest move will further fuel China’s efforts to develop alternative technologies as the nation strives to be self-reliant in technology.
The rules are not expected to include restrictions on access to GPUs hosted on U.S. cloud computing services, though access to them could soon be curbed under an executive order.
The Semiconductor Industry Association, a trade association and lobbying group that represents the United States semiconductor industry issued a statement saying it is evaluating the impact of the updated export controls.
“We recognize the need to protect national security and believe maintaining a healthy U.S. semiconductor industry is an essential component to achieving that goal,” the group said.
“Overly broad, unilateral controls risk harming the U.S. semiconductor ecosystem without advancing national security as they encourage overseas customers to look elsewhere.”
According to the New York Times, some of the affected companies earn as much as a third of their revenue from Chinese buyers. Unsurprisingly, the new export restrictions saw the shares of Nvidia and other AI chip companies fall on Tuesday.
Paul Mah is the editor of DSAITrends. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose. You can reach him at [email protected].
Image credit: iStockphoto/Andrea Nicolini
Paul Mah
Paul Mah is the editor of DSAITrends, where he report on the latest developments in data science and AI. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose.