U.S. warns of 'irretrievable losses' due to ban on export of AI chips to China
Date: 2023-06-29 Author: Karina Ziganova Categories: IN WORLD
Tightening the ban on the export of chips for artificial intelligence to China will lead to "irrevocable losses" for the American industry, Nvidia warned
The White House ban on the export of artificial intelligence (AI) chips to China will hit the US market. This opinion was expressed by Nvidia CFO Colette Kress in an interview with Reuters.
According to her, export restrictions in the long term will lead to "the irretrievable loss of American industry's ability to compete and lead in one of the world's largest markets." She also added that the ban could affect Nvidia's business, including the company's financial performance.
It is noteworthy that in the commentary to Bloomberg, Kress took a different position. She said that the company is unlikely to incur significant losses due to a possible ban, noting that the overall demand for products from Nvidia remains at a high level. At the same time, she acknowledged that the Chinese market is significant for the company, since it accounts for 20-25% of Nvidia's revenue in the data center segment.
According to The Wall Street Journal (WSJ), US President Joe Biden's administration fears that China will start using AI chips for military purposes. Experts interviewed by the WSJ admit that AI chips can be used by China to create computer viruses or chemical weapons.
The authorities may make a decision as early as July. It is assumed that the export ban will primarily affect the A800 graphics chip from Nvidia, which the company developed specifically for China. It is also expected that export sanctions will affect AMD.
