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US tightens rules on AI chip sales to China in blow to Nvidia

Biden administration’s move aims to limit country’s access to advanced processors

The Biden administration is tightening export controls for cutting-edge artificial intelligence chips, in an update to existing rules that will severely limit the ability of Nvidia and other manufacturers to sell high-performance semiconductors to China.

The US commerce department on Tuesday extended the sweeping export controls that were first introduced in October 2022, in an effort to reflect technological advances and also to make it harder for companies to find ways to work around the restrictions.

Commerce secretary Gina Raimondo said the goal of the update was to curb China’s access to advanced chips that “could fuel breakthroughs in artificial intelligence and sophisticated computers” that are critical for the Chinese military.

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