The United States on Tuesday said it was tightening curbs on exports of state-of-the-art AI chips to China, sending the share price of Nvidia and other semiconductor companies plummeting on Wall Street.
The measures are the latest chapter in the policy started under the Trump administration to limit Beijing's ability to gain too much ground and become a leading tech economy.
But calls to further close off the supply chain grew after the world discovered the powers of AI with the launch of ChatGPT. The rules may even"require the Company to transition certain operations out of one or more of the identified countries," it added. The main focus of attention has been Nvidia's industry-leading H100 chip, which is crucial for the creation of generative AI, the technology behind ChatGPT and other powerful systems.
- 'Permanent loss' -Nvidia's share price sank sharply following the announcement and closed down 4.7 percent.The chip giants have lobbied hard to prevent further curbs on their business in China.
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