Investing.com–The US government is preparing to introduce a new rule aimed at restricting Chinese companies’ access to advanced artificial intelligence (AI) chips through third countries, South China Morning Post (SCMP) reported Thursday, citing unnamed sources.
The proposed export control measure, expected in late December, will target the global shipment of high-performance graphics processing units (GPUs) crucial for training AI models. The aim is to close loopholes in existing regulations and help the US maintain its leadership in AI technology, the report said.
The rule, which has yet to be finalized, would mark a significant escalation of chip-related restrictions following a recent wave of U.S. sanctions, the SCMP report said.
Earlier this month, the Joe Biden administration blacklisted 140 Chinese semiconductor companies and banned the sale of high-bandwidth memory chips to China. Beijing retaliated by restricting exports to the US of crucial minerals such as graphite and launching an antitrust investigation into Nvidia.
The new rule, crafted with input from U.S. Commerce Secretary Gina Raimondo and National Security Advisor Jake Sullivan, is expected to include measures such as country limits on GPU supplies and a global licensing system with reporting requirements. These provisions are intended to prevent Chinese companies from circumventing export controls through countries such as Singapore and Malaysia, which remain major hubs for GPU smuggling, SCMP said.
Smuggling rings have reportedly become more sophisticated, with individuals shipping GPUs one by one into mainland China, creating a black market for highly sought-after chips like Nvidia’s RTX 4090. The price of this consumer-grade GPU has skyrocketed recently due to supply constraints, the report said.
NVIDIA Corporation (NASDAQ:) said in a statement to the Post on Thursday that it was willing to cooperate with the US government.
