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America gave a blow to China, the export of chips for military use stopped

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Strong points

The US decision to stop exporting AI chips to China
This decision by the Biden administration caused huge losses to American companies
America made the decision with national security and foreign policy interests in mind.

Washington. Amid ongoing tensions between China and the United States over Taiwan, the Biden government has asked US giants such as advanced chipmaker Nvidia Corp and Advanced Micro Devices Inc to stop exporting AI chips. to China. According to a Reuters report, this gamble by America can put a damper on all of China’s artificial intelligence-related projects. However, American companies have also suffered greatly from this ban.

Nvidia shares fell 6.6% hours after the export halt was announced. The company said the ban would impact development of the A100 and H100 chips designed to speed up machine learning tasks. In addition, the development of the flagship H100 chip announced this year could also be hampered. As a result of the ban, shares of rival Nvidia company Advanced Micro Devices Inc. (AMD.O) also fell 3.7%.

A spokesman for Advanced Micro Devices told Reuters the new rules would prevent the company’s MI250 artificial intelligence chip from exporting to China, but would not affect MI100 chips.

China’s military use will be banned
According to US officials, due to the new rules, there will now be a complete cessation of concerns that China could use these state-of-the-art chips for military work. Previously, the US administration had received numerous reports indicating that China was using an AI chip for its military. Regarding the ban on AI chips in China, US officials say it is an attempt to prevent cutting-edge technology from falling into the wrong hands. Officials said the decision was made with America’s security and foreign policy in mind.

Tags: China, UNITED STATES

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