The relations between the United States and the United States are already being called the new Cold War. Tensions between the two powers are constantly growing, and both sides are taking further blows to each other. The USA has blocked Huawei and TikTok from its market, and China does not allow the purchase of chips from Micron Technology. Both sides rely on security concerns. The conflict is also starting to increasingly involve the issue of (artificial intelligence).
The US will block the sale of AI chips to China
The administration is working on new sanctions that will stop the deliveries of advanced AI chips from Nvidia and other companies to China – This mainly concerns the H800 and A800 chips that have already been slowed down on the Chinese market. In this way, Washington wants to keep the Middle Kingdom’s army away from the latest technologies.
The restrictions are to come into force within 30 days and, apart from China, will also cover other countries, including Iran and Russia. In addition to chips, it will not be possible to export tools for their production. In addition, Moore Threads and Biren, which deal with chip design, will be blacklisted in the USA.
The new regulations close the existing legal loopholes in the sanctions from October 2022. Despite the restrictions, chips whose export was banned could still be purchased in China. The Center for Security and Emerging Technology at Georgetown University reported in June 2022 that of the 97 AI chips purchased under Chinese military tenders in 8 months of 2020, almost all were designed by American companies Nvidia, Xilinx, Intel and Microsemi .
The American government has officially announced that the regulations will most likely be updated at least once a year. Gina Raimondo, the US Secretary of Commerce, stressed that the regulations are not intended to harm China economically, but only to “restrict access to semiconductors that can power breakthroughs in AI and advanced computers crucial to China.” According to the US, the capabilities of AI and supercomputers increase the speed and accuracy of decisions, planning and military logistics. According to Raimondo, despite the new sanctions, China will continue to import chips worth tens of billions of dollars from the United States.
A spokesman for the Chinese embassy replied that it was against the new restrictions and added that “arbitrary introduction of restrictions or forced decoupling (in this case cutting off from China – ed.) as part of a political program violates the principles of market economy and fair competition and undermines international economic relations.” .
Nvidia is losing on the stock market, Baidu too
in a statement, it concluded that the regulations are legal and that it does not expect them to have a significant impact on the company’s results. The previous sanctions strengthened the position of Nvidia, whose chips are currently unrivaled in the Middle Kingdom. In the long term, the company will probably lose from sanctions because China will start looking for components from other manufacturers, writes Reuters.
The first symptoms of this state of affairs are already visible. On Tuesday, after the announcement of new sanctions, Nvidia lost on the stock exchange. Its shares fell from over $460 to $430. There was a quick correction to the level of USD 444, then a decline again and relative stabilization on Wednesday around USD 439. That’s 4.68 percent. less than at Tuesday’s closing.
Nvidia shares after the US announced new sanctions photo: stooq.pl
In China, on the other hand, Baidu lost on the stock exchange and here we also have artificial intelligence in the background. The company has just presented Ernie 4.0, the answer to .
“Market analysts were not impressed. There were comments that Ernie 4.0 does not differ from the previous version with major changes. Baidu’s shares on the Hong Kong Stock Exchange fell by 1.32%. However, experts reassure that the quotations will increase when the new model finds practical application. application. Meanwhile, Baidu announced that Ernie 4.0 will be used in all its products, such as Baidu Drive (a data storage service, a competitor to Google Drive) and Baidu Map (a competitor to Google Maps). Baidu Map now allows users to access the features using natural language queries handled by Ernie, this was not possible before” –
Source: Gazeta
Mabel is a talented author and journalist with a passion for all things technology. As an experienced writer for the 247 News Agency, she has established a reputation for her in-depth reporting and expert analysis on the latest developments in the tech industry.
