U.S.-made AI chips are off-limits to China with the new rules. (Source: Adobe Stock)

NYT: U.S. Severely Limits China’s Access to U.S.-Made AI Computer Chips

According to nytimes.com, the Biden Administration took firm steps to limit China’s access to AI chips by cutting off importation and increasing its limits on the access to AI technologies that the United States put in place a year ago in October of 2022.

The article says the move is to limit China’s ability to make progress in supercomputing and AI in military applications, such as hypersonic missile guidance, advanced surveillance systems and the ability to decipher top-secret U.S. codes.

“The rules appear likely to halt most shipments of advanced semiconductors from the United States to Chinese data centers, which use them to produce models capable of artificial intelligence. More U.S. companies seeking to sell China advanced chips, or the machinery used to make them, will be required to notify the government of their plans, or obtain a special license.”

The story by Ana Swanson explains that the restrictions will also limit China’s ability to take advantage of other AI technologies, such as chatbots, AI chatbots, which could affect its competitive abilities in an array of industries. U.S. chip manufacturers had fought against the new rules.

“The limits also appear likely to affect sales to China of U.S. chip makers such as Nvidia, AMD and Intel. Some chip makers earn as much as a third of their revenue from Chinese buyers and spent recent months lobbying against tighter restrictions.”

The article noted that the new rules could also impact diplomatic relations. But it could also serve as a bargaining chip.

“The tougher rules could anger Chinese officials when the Biden administration is trying to improve relations and prepare for a potential meeting between President Biden and China’s top leader, Xi Jinping, in California next month.”

read more at nytimes.com