The US considers restricting the export of AI chips to China

The US may impose restrictions on exports of AI (artificial intelligence) chips to China. That “It’s almost becoming a matter of geopolitical economic warfare,” says a Wall Street strategist.

O reports that the US Department of Commerce could impose more export restrictions on the most advanced semiconductors with artificial intelligence capability they would likely have implications for China’s economic growth and military advances.

“This doesn’t just point to future economic growth. It’s also very, very specific to military AI, which is the new frontier.said Ted Mortonson, technology sector strategist at Baird.

Any new restrictions would be on top of those announced last year on machinery to manufacture the most advanced chip technologies, as well as Nvidia’s A100 and H100 circuitry for very deep generative AI payloads.

“No one knows how far these (restrictions) gosays Mortonson. “But I think it’s pretty obvious that it’s now become economic policy not to allow China to have our most advanced silicon technology.”

The semiconductor industry exploded this year amid the artificial intelligence boom. Investors resorted names like Nvidia and AMD. China accounts for between 25% and 30% of the two companies’ total revenue.

It is unclear how China would react to the new restrictions, but investors can expect retaliation from Beijing against US companies.

China controls much of the supply of other products to the United States. They will not stand idly by. They will counter the US in other ways»says the strategist. “They go after some American companies that have really, really big businesses.”

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