There are discussions taking place in the United States regarding tighter controls on an export regulation to limit the availability of artificial intelligence (AI) chips to China.
Sources close to officials indicate that the stricter regulations would involve imposing restrictions on the computing power of exported chips.
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The sources suggest that an update to the rules could be announced by late July.
These potential restrictions on the sale of powerful computing chips have raised concerns among major players in the industry.
During an investor conference on June 28, Colette Kress, the CFO of Nvidia, one of the leading chip manufacturers in the world, expressed her thoughts on the matter.
She stated that if the restrictions were implemented, it would result in a permanent loss of opportunities for the U.S. industry to compete and lead in one of the world’s largest markets.
Kress mentioned that such regulations would not have an immediate impact on the company’s financial results.
In her words: “if implemented, [restrictions] would result in a permanent loss of opportunities for U.S. industry to compete and lead in one of the world’s largest markets…”
In late May, Nvidia’s market value briefly exceeded $1 trillion due to the booming demand for AI chips.
Originally, the restrictions on AI chip sales to China were introduced by President Joe Biden’s administration in October 2022 to slow down the semiconductor industry.
The ban implemented in October cut off Chinese developers from accessing some of the most advanced chips available.
This included Nvidia’s A100 chips and the latest version, the H100. These chips are highly sought after for advanced AI development.
In May, Nvidia announced a second-quarter revenue forecast that was 50% higher than market estimates, leading to a 28% increase in company shares.
Around the same time, the company introduced new AI-powered tools, including an AI supercomputer designed to assist developers in creating successors to OpenAI’s ChatGPT.
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Meanwhile, in China, local developers have been exploring ways to mitigate the impact of U.S. sanctions.
Companies are reportedly researching alternative methods to develop AI chips using less powerful semiconductors and combinations of currently available chips.
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