Nvidia, Intel, and AMD shares nosedived following the widened ban to include other lower-performing chips.
Attention centres on Nvidia’s industry-leading H100 chip, which is crucial for the creation of generative AI, the technology behind ChatGPT.
“Today’s updated rules will increase the effectiveness of our controls and further shut off pathways to evade our restrictions,” said US Commerce Secretary Gina Raimondo. Also causing alarm in Washington was news that China-owned Huawei had released a new smartphone that featured a powerful home-grown advanced chip.In a statement filed late Tuesday, Nvidia said the new rules “may impact the Company’s ability to complete development of products in a timely manner, support existing customers of covered products, or supply customers of covered products outside the impacted regions”.
“It’s true that AI has the potential for huge societal benefit. But it also can do tremendous and profound harm if it’s in the wrong hands and in the wrong militaries,” she told US media.
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