U.S. Investigates Nvidia’s AI Chips for China

U.S. Secretary of Commerce Gina Raimondo told Bloomberg on December 11 that the U.S. government is scrutinizing three artificial intelligence (AI) chips developed by Nvidia Corp. for the Chinese market to determine if they violate recently enacted export controls.

Declaring:

“We look at every spec of every new chip, obviously to make sure it doesn’t violate the export controls … We talk to Nvidia regularly, and I should say they’re a good partner … We have a close working relationship with them. They share information.”

Raimondo stated that her agency collaborates closely with Nvidia and other chipmakers to ensure that new products comply with export regulations.

According to separate reports, the prohibition is restricted to sophisticated AI technology only. Raimondo stated in an interview with Reuters that Nvidia “can, will, and should” supply China with AI processors for commercial purposes but that the United States government is working to impede the sale of the most potent chips.

She declared:

 “What we cannot allow [Nvidia] to ship the most sophisticated, highest-processing power AI chips, which would enable China to train their frontier models.”

Both sources indicate that Nvidia is amenable to working with the United States government. Raimondo, paraphrasing Nvidia CEO Jensen Huang, was quoted by Reuters as saying, “Tell us the guidelines, and we’ll work with you.”

Nvidia told Bloomberg that it reaffirmed its partnership with the United States and declared its intention to provide “compliant data center solutions… globally.”

The most recent information follows weeks of related events. According to a report by Reuters on October 13, the Biden administration intended to restrict foreign access to AI processors.

On October 17, the U.S. Department of Commerce formally announced its intention to prohibit the export of specific advanced artificial intelligence processors to China. Despite an initially extended deadline, the policy was unexpectedly implemented around October 24.

Consequently, Nvidia redirected its efforts towards developing multiple processors explicitly tailored for the Chinese market, which appears to have incited the most recent analysis.

Raimondo stated during a conference the week of December 4 that her agency would “control it the very next day” if a company redesigns a chip around a “cutline” intended to restrict the device’s potency.