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

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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 rules restricted shipments of Nvidia Corp and Advanced Micro Devices

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 AI companies that we talk to seem to see the handicap as relatively small and manageable," said Charlie Chai, a Shanghai-based analyst with 86Research. The export restrictions have two parts. The first puts a ceiling on a chip's ability to calculate extremely precise numbers, a measure designed to limit supercomputers that can be used in military research. Chip industry sources said that was an effective action.

Bill Dally, Nvidia's chief scientist, said in a separate statement this week that “this gap will grow quickly over time as training requirements continue to double every six to 12 months."

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