US considers tougher restrictions on export of AI chips to China

The United States is considering tougher restrictions on exports of ‘Artificial Intelligence’ (AI) chips to China, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Shares of Nvidia fell more than 2%, while Advanced Micro Devices (AMD) fell about 1.5% on the news in extended trading.

According to media reports, the Commerce Department will stop the shipments of chips made by Nvidia and other chip companies to customers in China as early as July,

Nvidia, Micron, and AMD are among the U.S. chipmakers caught in the crossfire between China and the Biden administration.

In September, Nvidia had said that U.S. officials asked the company to stop exporting two top computing chips for artificial intelligence work to China.

Months later, Jensen Huang-led Nvidia said it will offer a new advanced chip called the A800 in China to meet export control rules. The company also tweaked its flagship H100 chip early this year to comply with regulations.

But the new curbs being mulled by the department would ban the sale of even A800 chips without a special U.S. export license, the report added.

With inputs from Reuters

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