Washington Considers Tightening Restrictions on Chinese Access to US AI Chips
The government in Washington is reportedly considering further limiting China’s access to U.S. processors used in artificial intelligence (AI) applications. The current restrictions, introduced last year, allow Chinese companies to source the chips through overseas subsidiaries.
Potential Broader Curbs on U.S. Semiconductor Shipments
The administration of President Joe Biden may broaden the curbs on the shipments of U.S. semiconductors used for AI to Chinese companies to include their units abroad, according to sources familiar with the matter.
Loophole Closure
The initial restrictions implemented in 2022 aimed to hinder Beijing’s military advances by preventing the supply of American AI chips and chipmaking tools to China. However, these restrictions did not cover overseas subsidiaries of Chinese firms, allowing them to import the chips into China or access them remotely. This loophole is expected to be closed soon.
Chinese Firms Acquiring Processors
Greg Allen from the Center for Strategic and International Studies states that Chinese firms are indeed purchasing chips for use in data centers abroad. He cites Singapore as an example, a major hub for cloud computing.
Washington’s Efforts to Halt China’s AI Capability
The U.S. government has been trying to impede China’s progress in AI, which heavily relies on access to American chips. A study by the Center for Security and Emerging Technology (CSET) found that nearly all AI chips acquired through Chinese military tenders in 2020 were designed by U.S.-based companies Nvidia, Xilinx, Intel, and Microsemi.
Expansion of Export Restrictions
In August of this year, the U.S. government expanded export restrictions on AI chips made by Nvidia and AMD to China, including certain countries in the Middle East. The sources suggest that new measures, expected this month, will also cover other suppliers.
AI Processor Shortage
The launch and increasing popularity of AI-based chatbots and assistants have caused a shortage of AI processors in the market. Openai, the developer of Chatgpt, is reportedly exploring the possibility of creating its own AI chips to address this shortage.
Hot Take: Washington Tightens Restrictions on Chinese Access to US AI Chips
The U.S. government is taking further steps to limit China’s access to American processors used in AI applications. By closing the loophole that allowed Chinese companies to source chips through overseas subsidiaries, Washington aims to hinder Beijing’s military advances and curtail China’s reliance on American chips for its AI capabilities. This move follows previous export restrictions on AI chips made by Nvidia and AMD to China. As the demand for AI processors continues to rise with the popularity of AI-based technologies like chatbots, Openai is even considering developing its own AI chips. These developments reflect Washington’s ongoing efforts to protect national security interests and maintain control over critical technologies.
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