US tightens restrictions on AI chip exports to maintain dominance, impacting NVIDIA and AMD

From Investing.com: 2025-01-13 08:50:51

The U.S. government announced new restrictions on AI chip exports to maintain dominance and block China’s access. The regulations will cap exports to most countries while giving unlimited access to U.S. allies. Major cloud providers can seek global authorizations, but with strict conditions. Nvidia and AMD stocks dropped in response.

The rules aim to maintain U.S. leadership in AI by controlling the global flow of chips. NVIDIA criticized the regulations as “sweeping overreach,” while Oracle warned they could benefit Chinese competitors. The regulations divide the world into three tiers, with some countries exempt, others facing caps, and arms-embargoed countries banned from receiving the technology.

AI has the potential to bring various benefits but also poses risks like supporting cyberattacks and human rights abuses. U.S. National Security Adviser Jake Sullivan highlighted the need for the U.S. to prepare for the transformative impact of AI on the economy and national security.



Read more at Investing.com: US tightens its grip on AI chip flows across the globe By Reuters