The US has decided to lay down the hammer when it comes to AI chip exports…

The Biden administration already had rules in place last year to limit this…

They will be imposing new restrictions in the coming weeks in order to prevent the CCP from acquiring cutting-edge U.S. technologies.

What does this mean for chip manufacturers?

Chips that were previously within the guidelines will likely no longer be once the new rules come into play…

For example, Nvidia’s A800 and H800s will no longer be compliant due to new parameter regulations.

The previous rules set in place involved a two-part test which measured both the performance of the chips as well as their ability to communicate with other chips.

This communication is essentially how AI supercomputers are built…

In order to comply, companies like Nvidia built semiconductors that were nearly as powerful as their non-china counterparts (H100s and A100s for Nvidia), while severely limiting their ability to interact with one another.

The problem?

China is looking to work around this issue using a new “chiplet” technology…

Chiplets, also known as small chips, can vary in size and are assembled through an advanced packaging process.

The new regulations are meant to combat this…

With the large demand and constriction in supply, these new rules are unlikely to impact Nvidia in the short run, but may have a more substantial impact down the road!

That’s all for now.

Until Next Time,

-Damian