China's AI industry barely slowed by US chip export rules

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U.S. microchip export controls imposed last year to freeze China's development of supercomputers used to develop nuclear weapons and artificial-intelligence systems like ChatGPT are having only minimal effects on China's tech sector.

"The government isn’t seeking to harm competition or U.S. industry, and allows U.S. firms to supply products for commercial activities, such as providing cloud services for consumers," Nvidia said in a statement last week."The October export controls require that we create products with an expanding gap between the two markets," Nvidia said last week. We comply with the regulation while offering as-competitive-as-possible products in each market.

Nvidia has not disclosed the China-only H800 chip's performance details, but a specification sheet seen by Reuters shows a chip-to-chip speed of 400 gigabytes per second, less than half the peak speed of 900 gigabytes per second for Nvidia's flagship H100 chip available outside China. Money helps. A chip in China that takes twice as long to finish an AI training task than a faster U.S. chip can still get the work done.

 

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