Details on the export rule for AI chips are expected soon, according to a White House official

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Last Updated on October 1, 2022 by Bitfinsider

A White House official said on Friday that the Biden administration could “very soon” provide more information on a potential new regulation for exporting high-performance AI chips to China (Sep 30).

The US Department of Commerce wrote to Nvidia Corp. and Advanced Micro Devices Inc. last month asking them to halt shipments of chips that can be used for applications like natural language processing and nuclear weapons research. According to Tarun Chhabra, an official with the National Security Council who focuses on technology issues, these letters were likely the beginning of further regulation.

In his remarks at a gathering sponsored by the Brookings Institution, he avoided speculating on the possible details of that rule.

According to Reuters, the US Commerce Department is planning export restrictions on AI chips that could go into effect as early as October.

Nvidia’s stock dropped after the firm revealed the letters might harm as much as US$400 million in revenue in its current fiscal quarter in response to the revelation on Sep. 1 that the semiconductor companies had received letters.

The potential language for the additional limits was not specified by American officials.

Jensen Huang, the CEO of Nvidia, stated earlier this month that the letters spelled out curbs on chips with a combination of a chip’s performance and its capacity to connect to other chips to quickly move large amounts of data around a data center, criteria that only affected a small number of Nvidia’s products.

In his remarks on Friday, Chabbra stated that the limitations are “organized as a mix of computational power but also interconnect speed” and that they only apply to the most cutting-edge devices.

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