Nvidia, the tech giant, has announced that the United States has moved up the timeline for restrictions on its advanced artificial intelligence (AI) chips, barring exports of these chips to China. Originally set to take effect 30 days from October 17, these measures are part of a broader initiative introduced by the Biden administration to prevent countries like China, Iran, and Russia from purchasing high-end AI chips, including those made by Nvidia.
In a statement to the US Securities and Exchange Commission (SEC), Nvidia stated that the US government informed them that the restrictions are “effective immediately.” However, the company does not foresee a significant short-term impact on its financial results due to the strong global demand for its products.
Nvidia had designed these advanced AI chips with the Chinese market in mind, in compliance with earlier export regulations. The accelerated timeline for these restrictions marks the latest development in the ongoing tech dispute between the US and China.
China has not yet issued an official response to Nvidia’s announcement. Nevertheless, it previously criticised the Biden administration’s decision to impose new restrictions on advanced chip exports, citing violations of market economy principles and fair competition.
The initial wave of chip controls implemented by the US aimed to prevent China from acquiring cutting-edge technologies that could enhance its military capabilities, particularly in AI. Nvidia’s AI chips have experienced soaring demand, driving the company’s share price to over three times its previous value and making it one of the world’s most valuable firms. Nvidia joined the elite group of companies with market valuations exceeding $1 trillion, which includes tech giants like Apple, Amazon, Alphabet, and Microsoft.
The chipmaker “Advanced Micro Devices (AMD),” which also supplies AI chips to China, has not yet announced changes in response to these accelerated export restrictions.