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nvidia (Nasdaq: NVDA) and advanced micro-devices (Nasdaq: AMD) He falls ~4% premarket on Wednesday following a report that the US is considering new restrictions on exports of chips used to train artificial intelligence (AI) models to China, the wall Street Journal It was reported on Tuesday, citing people familiar with the matter.
Nvidia and AMD are the market leaders for chips critical to developing generative AI models such as ChatGPT, which is developed by Microsoft (Nasdaq: MSFT) supports OpenAI.
The US Commerce Department could stop shipments of some chips made by Nvidia and other chip companies to customers in China as early as July, according to a report.
In September, Nvidia and AMD confirmed that the US government had limited the sale of some of their products to China and Russia. The Biden administration also aims to expand restrictions on semiconductor exports to China with the goal of preventing China from obtaining chips that can be used in artificial intelligence and related chipmaking tools.
Months later, Jensen Huang, CEO of Nvdia, indicated that the company would introduce a new advanced chip known as the A800 in China to meet export requirements. The company also made changes to its flagship H100 chip early this year to meet regulations, according to the company. a report From Reuters.
The report added that the new restrictions being discussed by the Commerce Department would even ban the sale of A800 chips without a special US export license.
The Wall Street Journal reported that the US is considering taking action as soon as next month to extend the restrictions to these low-energy semiconductors.
The Wall Street Journal added that US officials are also considering whether to restrict the leasing of cloud services to Chinese artificial intelligence companies, which have used such platforms to train their models.
Amazon.com (AMZN) and Microsoft are among the largest cloud service providers in the world.
“Chinese AI companies may also be able to obtain custom AI chips from outside countries. So I think it will be difficult for the United States to enforce regulations,” Bloomberg News mentioned Quoted by Robert Lea, analyst at Bloomberg Intelligence.
After ChatGPT was released, Chinese companies including Alibaba (BABA) (OTCPK: BABAF), SenseTime (OTCPK: SNTMF), and Baidu (BIDU) launched their own AI services. According to a recent study, Chinese organizations have launched 79 LLMs in the past three years in a bid to boost their AI technology capabilities.
NVDA -4.72% to $399.00 on June 28th
AMD -3.45% to $106.58