The Trump administration is considering new export restrictions on AI chips to Southeast Asian countries. This decision aims to curb suspected smuggling to China.
New Export Restrictions on AI Chips
The Trump administration may impose new restrictions on the sale of AI chips, including those from Nvidia, to Malaysia and Thailand. This moves aims to combat suspected smuggling of semiconductors to China. Previously, sales of Nvidia's chips to China were banned due to national security concerns, and now officials want to close other alternative routes.
Commerce Department Strategy
Reports indicate that the U.S. Commerce Department has drafted a version of the proposed rule, though it remains under review and has not yet been finalized. It is expected that the new restrictions will be linked to a formal withdrawal of global limits established under the AI diffusion rule. These measures were implemented during President Biden's term but faced criticism from trade partners and tech firms.
Nvidia's Perspective on the Situation
Nvidia CEO Jensen Huang stated that the company has no evidence of AI chips being redirected to China. He emphasized that their equipment is too large to be easily smuggled and that clients are well aware of existing regulations. 'There’s no evidence of any AI chip diversion. These are massive systems. The Grace Blackwell system is nearly two tons, and so you’re not going to be putting that in your pocket or your backpack anytime soon.', he commented.
The potential new restrictions on AI chip exports to Malaysia and Thailand highlight ongoing concerns in the U.S. regarding national technology security and efforts to combat smuggling. The fate of these proposals remains uncertain as the situation unfolds.
