How the new rules will impact China
The new export controls are expected to have a significant impact on China’s AI industry, which relies heavily on imported chips. The restrictions will make it more difficult for Chinese companies to develop and deploy new AI technologies, and could also slow down China’s progress in areas such as self-driving cars and facial recognition.
How will it impact the US
The new export controls could also have implications for the US tech industry. American chipmakers are the world leaders in AI chip design and manufacturing, and they currently have a dominant share of the Chinese market. However, the new restrictions could make it more difficult for US chipmakers to sell their products to China.
This could lead to a loss of revenue for US chipmakers and could also damage their relationships with Chinese customers. In the long term, it could also lead to Chinese companies developing their own AI chips, which could reduce US chipmakers’ global market share.
Nvidia was stopped by the US from shipping two of its most powerful AI chips to China. These chips are the foundation of generative AI models like ChatGPT and others. However, Nvidia launched new variants of the chips and exported them to US. The new chips — H800 — were on the same level but were missing key performance aspects, as per the report. Now, it could become difficult for Nvidia to sell the new chips as well.