US tackles loopholes in curbs on AI chip exports to China

The U.S. will implement new rules to prevent American chipmakers from selling AI semiconductors to China that bypass existing government restrictions. These rules, part of the Biden administration’s efforts to block more AI chip exports, will be added to the restrictions on advanced chip shipments to China announced in October 2022. The updates, expected this week, aim to block certain AI chips that evade current technical parameters. While specific chips weren’t identified, Nvidia’s H800 is reportedly one of the targets. Consumer product chips are exempt, but companies must inform the Commerce Department about powerful consumer chip orders to prevent national security threats. The U.S. plans to restrict chips based solely on performance speed, removing the bandwidth parameter and considering “performance density.” Firms must notify the government about chips slightly below guidelines before exporting to China. The rules may also close loopholes granting Chinese firms access to U.S. AI chips through overseas units. There won’t be restrictions on U.S. cloud computing services, but the U.S. will assess related risks and seek comments. This move aligns with the Biden administration’s efforts to stabilize U.S.-China relations.