The developments in the field of artificial intelligence seem like the next arms race. US-based companies have had an edge whereas China at the moment seems lagging behind a bit. If reports are to believed the Chinese AI party could be dealt a severe blow by the United States of America. According to a report by The Wall Street Journal (WSJ), the US Department of Commerce is planning to prohibit shipments of chips from US-based manufacturers.
Ever since the AI wave has spread, one company that has reaped big benefits is Nvidia. In fact, last month, the market valuation of Nvidia touched $1 trillion. Nvida makes chips that help companies train their AI-powered language models. What the US wants to do is stop Nvidia — among others — from shipping these chips to customers in China. The report by WSJ also says that the US could implement the ban as soon as next month.
According to the report, the US wants to limit China’s AI progress, especially in the defence and military sectors.
Back in September 2022, the US banned Nvidia from exporting two of its most advanced chips to China. Nvidia A100 and H100 are the two important chips that were banned by the US. Both chips are used for high-performance computing as well as for training AI models.
In what was a workaround, Nvidia did come up with a new less powerful chip that could have been exported to China. However, the US now plans to block that as well.
The report also adds that the US is mulling over the idea of limiting the use of cloud services by Chinese companies. There are quite a few Chinese companies that rely on US-based cloud services and not on homegrown companies like Alibaba or Tencent.
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