New Delhi:- The Wall Street Journal reported on Tuesday that the United States is considering new restrictions on exports of artificial intelligence (AI) chips to China, citing people familiar with the matter. Nvidia shares fell more than 2% on the news, while Advanced Micro Devices (AMD) fell about 1.5% in after-hours trading.
The Commerce Department plans to stop shipments of chips from Nvidia and other chip makers to Chinese customers as early as July, the report said. Nvidia, Micron, and AMD are among the US chip makers caught in the barrage between China and the Biden administration.
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Nvidia announced in September that U.S. authorities had asked the company to stop exporting to China the top two types of computer chips designed to work with artificial intelligence. A few months later, Nvidia, led by Jensen Huang, announced that it would offer a new advanced chip called the A800 in China to comply with export control regulations.
Earlier this year, the company tweaked its flagship H100 chip to comply with regulations. However, new regulations the ministry is considering would bar the sale of even A800 chips without a special US export license, the report added. The Commerce Department did not respond to Reuters' request for comment.
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The Commerce will soon stop the shipping of the Nvidia chip and all the other chips to China in July for customers. The commerce department not responding to Reuters an international news/media company that requested comment on this.
The US has now made mandatory the export of the Nvidia A800 chips in China or will be not lent permission to continue further supply to China for the customers there