With the Biden administration set to strengthen export controls, limiting shipments of certain AI chips to China, does anyone see the dip this week being a buy opportunity? 

The U.S. Commerce Department is expected to release a proposal in July, making it harder to sell specific chips to China without a license. One focus is on Nvidia's A800 chip, designed for the Chinese market in response to earlier restrictions. The company also made adjustments to its flagship H100 chip to ensure compliance. Under the newly proposed controls, even the A800 chip would be subject to export restrictions without licensing.  

https://www.wsj.com/articles/u-s-considers-new-curbs-on-ai-chip-exports-to-china-56b17feb?mod=tech_lead_pos2

WSJ News Exclusive | U.S. Considers New Curbs on AI Chip Exports to China

With the Biden administration set to strengthen export controls, limiting shipments of certain AI chips to China, does anyone see the dip this week being a buy opportunity?   The U.S. Commerce Department is expected to release a proposal in July, making it harder to sell specific chips to China without a license. One focus is on Nvidia's A800 chip, designed for the Chinese market in response to earlier restrictions. The company also made adjustments to its flagship H100 chip to ensure compliance. Under the newly proposed controls, even the A800 chip would be subject to export restrictions without licensing.    https://www.wsj.com/articles/u-s-considers-new-curbs-on-ai-chip-exports-to-china-56b17feb?mod=tech_lead_pos2

Bobby

US gov to Nvidia: 'If you redesign a chip that enables China to do AI, I'm going to control it the very next day'
So it looks like NVDA wouldn't be able to just continuously create slightly cut down versions of their products for the Chinese market in the future. Like the rumored RTX 4090D and L40s

Thoughts?

https://www.pcgamer.com/us-gov-fires-a-warning-shot-at-nvidia-we-cannot-let-china-get-these-chips-if-you-redesign-a-chip-that-enables-them-to-do-ai-im-going-to-control-it-the-very-next-day/
#Artificial Intelligence

Artificial Intelligence

US gov to Nvidia: 'If you redesign a chip that enables China to do AI, I'm going to control it the very next day' So it looks like NVDA wouldn't be able to just continuously create slightly cut down versions of their products for the Chinese market in the future. Like the rumored RTX 4090D and L40s  Thoughts?  https://www.pcgamer.com/us-gov-fires-a-warning-shot-at-nvidia-we-cannot-let-china-get-these-chips-if-you-redesign-a-chip-that-enables-them-to-do-ai-im-going-to-control-it-the-very-next-day/ #Artificial Intelligence

The chipmaker has been quick to redesign its products to pass the current restrictions, but US Commerce Secretary Gina Raimondo seems to have had enough.

US gov fires a warning shot at Nvidia: 'We cannot let China get these chips... If you redesign a chip that enables them to do AI, I'm going to control it the very next day'

Sam Mendoza

Nvidia's CEO warned of a "significant" drop in data center sales to Chinese companies due to new U.S. export rules. "We expect that our sales to these destinations will decline significantly in the fourth quarter of fiscal 2024, though we believe the decline will be more than offset by strong growth in other regions," the company said in a letter to shareholders. Still, Nvidia is working on new high-end AI chips for Chinese customers after its current ones were blocked from being sold in the country.

https://www.ft.com/content/045878a7-a75a-47b9-bc7f-115ea1025c5b

Nvidia's CEO warned of a "significant" drop in data center sales to Chinese companies due to new U.S. export rules. "We expect that our sales to these destinations will decline significantly in the fourth quarter of fiscal 2024, though we believe the decline will be more than offset by strong growth in other regions," the company said in a letter to shareholders. Still, Nvidia is working on new high-end AI chips for Chinese customers after its current ones were blocked from being sold in the country.  https://www.ft.com/content/045878a7-a75a-47b9-bc7f-115ea1025c5b

Jerome Cody

ASML’s commitment to fulfilling its China orders up to the end of the year will help ease some of the pressure on the country’s chip sector.
https://technode.com/2023/09/04/asmls-export-of-chip-making-machines-to-china-valid-until-year-end/

They’re also stockpiling ASML lithography chip-making machines that are set to start being restricted this month 

https://www.scmp.com/tech/tech-war/article/3232401/chinese-imports-asml-lithography-chip-making-machines-have-surged-past-dutch-companys-2023-estimates?utm_medium=email&utm_source=cm&utm_campaign=enlz-insidechinatech&utm_content=20230901&tpcc=enlz-insidechinatech&UUID=810ab81034dec15e3bb0ff25f2547918&tc=37&CMCampaignID=db0b394055a00d7f693fc0b8829ff92e

China's internet giants have rushed to order $5B worth of high-performance Nvidia chips crucial for generative AI systems. In China, Nvidia currently sells the A800 processor, a weakened version of its A100 that was adapted to comply with U.S. export control rules.
- Chinese firms are hoarding A800 chips amid efforts to offer cloud services and power AI training to replicate ChatGPT overseas.
- The stockpiling is tied to fears that U.S. export rules could eventually target less advanced AI chips, worsening the already-existing GPU shortage.
- According to FT sources, Baidu, ByteDance, Tencent, and Alibaba have ordered around 100,000 A800s worth $1B from Nvidia, set to be delivered this year.
- The companies also bought $4B worth of the GPUs for delivery in 2024.
Separately, TikTok owner ByteDance also amassed over 10,000 Nvidia GPUs and placed orders for nearly 70,000 A800 chips worth around $700M, two insiders revealed.

https://www.ft.com/content/9dfee156-4870-4ca4-b67d-bb5a285d855c

China's internet giants have rushed to order $5B worth of high-performance Nvidia chips crucial for generative AI systems. In China, Nvidia currently sells the A800 processor, a weakened version of its A100 that was adapted to comply with U.S. export control rules. - Chinese firms are hoarding A800 chips amid efforts to offer cloud services and power AI training to replicate ChatGPT overseas. - The stockpiling is tied to fears that U.S. export rules could eventually target less advanced AI chips, worsening the already-existing GPU shortage. - According to FT sources, Baidu, ByteDance, Tencent, and Alibaba have ordered around 100,000 A800s worth $1B from Nvidia, set to be delivered this year. - The companies also bought $4B worth of the GPUs for delivery in 2024. Separately, TikTok owner ByteDance also amassed over 10,000 Nvidia GPUs and placed orders for nearly 70,000 A800 chips worth around $700M, two insiders revealed.  https://www.ft.com/content/9dfee156-4870-4ca4-b67d-bb5a285d855c

They’re also stockpiling ASML lithography chip-making machines that are set to start being restricted this month   https://www.scmp.com/tech/tech-war/article/3232401/chinese-imports-asml-lithography-chip-making-machines-have-surged-past-dutch-companys-2023-estimates?utm_medium=email&utm_source=cm&utm_campaign=enlz-insidechinatech&utm_content=20230901&tpcc=enlz-insidechinatech&UUID=810ab81034dec15e3bb0ff25f2547918&tc=37&CMCampaignID=db0b394055a00d7f693fc0b8829ff92e

Chinese imports of the critical semiconductor equipment reached US$2.58 billion in the year through July, already more than the US$2.36 billion ASML projected.

China’s stockpiling of ASML chip-making machines push imports past 2023 estimates

ASML’s commitment to fulfilling its China orders up to the end of the year will help ease some of the pressure on the country’s chip sector. https://technode.com/2023/09/04/asmls-export-of-chip-making-machines-to-china-valid-until-year-end/

ASML has asserted that it is capable of fulfilling its contracts with Chinese customers before the end of this year, despite the Dutch government’s new export control measures coming into effect on Se

Bobby

A group of likeminded people in Artificial Intelligence are talking about this.