The US government is redefining its regulations on restricting advanced chips and manufacturing equipment, used in data centers to develop AI software, with the aim to gain advancements against geopolitical rival China.
In a bid to reduce likelihood of the nation gaining access to cutting-edge technology, the new rules seek to “streamline export curbs”, strengthening controls on the sale of graphics chips for AI, as well as advanced equipment used to create the chips themselves.
New guidelines will be established for companies such as Nvidia, who have had to provide lower quality capacities of its leading processor to China in order to adhere to the current rules. In turn, stricter standards here may cause increasing difficulties for American exporters, eliminating the chances for workarounds like those Nvidia are currently operating.
Initial restrictions began one year ago, imposed by the Biden administration, reportedly in an effort to simultaneously increase national security and to stall technology developments across China. Since rules have tightened, the nation has sought to accelerate investments in developing domestic advancements.
In the move to heighten restrictions, the US will set additional checks in efforts to prevent any potential for rerouting of shipments. Trade restriction lists will also begin to feature Chinese chip design firms, meaning overseas manufacturers to acquire US licenses to complete orders from the aforementioned companies. The full extent of updated restrictions are still to be announced.
