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China's access to Nvidia chips in doubt as curbs gain traction in US Congress

By · Published by Everything Blog

In short

Congressional Republicans plan to attach stringent chip export limits to the upcoming annual defence authorisation bill to counter Chinese technological advancement. Alongside the defence measure, lawmakers are advancing four standalone bills targeting remote server rentals, allied equipment sales, and hardware smuggling. In anticipation of tighter restrictions, Chinese artificial intelligence companies have already started trying to rent Nvidia computing capacity in foreign markets. Meanwhile, former chief executive Jensen Huang is slated to testify about the counterintelligence scandal before Thanksgiving.

Key points

  • Chinese artificial intelligence developers are actively trying to rent overseas Nvidia se…: Chinese artificial intelligence developers are actively trying to rent overseas Nvidia server capacity to evade imminent American regulatory crackdowns.
  • Congressional committees are coordinating directly with Nvidia to secure former CEO Jense…: Congressional committees are coordinating directly with Nvidia to secure former CEO Jensen Huang's testimony before November 26.
  • The legislative package aims to establish congressional oversight on exports while urging…: The legislative package aims to establish congressional oversight on exports while urging international allies to stop selling chipmaking equipment to China.

Sources checked by our analysis pipeline: 1

WASHINGTON: United States House Speaker Mike Johnson said on Thursday (Nov 12) there was growing consensus in Congress on limiting chip exports to China after a spy scandal forced out Nvidia CEO Jensen Huang.

Huang stepped down after reports of a romantic relationship with a businesswoman whom US authorities suspect of spying for the Chinese government.

Lawmakers from both parties have since called for tougher restrictions on China's access to advanced artificial intelligence chips, threatening access to chips that underpin China's surging AI development.

Nvidia's advanced AI chips are widely used to develop cutting-edge AI models, making the company key to the US race against China to build superior AI systems. The US has sought for years to limit China’s access to Nvidia’s chips because it does not want the Chinese military to benefit from them.

"The export controls on chips to China has been a big issue around here," Johnson, a Louisiana Republican, told reporters at the US Capitol, adding he favoured limiting China's access to the advanced technology.

"I think there's a developing consensus in Congress that is…

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