U.S. tackles loopholes in curbs on AI chip exports to China

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U.S. tackles loopholes in curbs on AI chip exports to China
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The new rules will be added to sweeping U.S. restrictions on shipments of advanced chips and chipmaking equipment to China unveiled last October.

Processors on display at the Bitmain Technologies Ltd. Sophon booth at the World Artificial Intelligence Conference in Shanghai, China, on Thursday, July 6, 2023.The U.S. will take steps to prevent American chipmakers from selling products to China that circumvent government restrictions, a U.S. official said, as part of the Biden administration's upcoming actions to block more AI chip exports.

A spokesperson for the U.S. Department of Commerce, which oversees export controls, declined to comment. But Nvidia soon released new variants for the Chinese market that were less sophisticated and got around the U.S. export controls. One, named the H800, has as much computing power at some settings used in AI work as the company's more powerful but blocked H100 chip. Still, some key performance aspects are limited, according to a specification sheet seen by Reuters.

In order to keep AI chips the U.S. views as too powerful from China, the official said the U.S. planned to remove one of the parameters — the "bandwidth parameter" — it has used to restrict exports of certain AI data center chips. By removing this parameter, another guideline kicks in, widening the scope of chips covered. This would likely mean the speed at which AI chips talk to each other would be reduced.

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