Nvidia and Anthropic tussle over US chip export controls
Image: Freepik/Nvidia/Anthropic
Mom, the AI giants are fighting again. Nvidia and Anthropic this week clashed over US export controls related to artificial intelligence chips, with each finding themselves at the opposite end of the spectrum.
- Anthropic, an Amazon-backed AI startup, published a blog post on Wednesday advocating for tighter US controls and enforcement when it comes to the tech, accusing Chinese companies of smuggling tactics that involve chips hidden in āprosthetic baby bumpsā and āpacked alongside live lobsters.ā
- In response, an Nvidia spokesperson told CNBC: āAmerican firms should focus on innovation and rise to the challenge, rather than tell tall tales that large, heavy, and sensitive electronics are somehow smuggled in ābaby bumpsā or āalongside live lobsters.ā"
Top of mind: The āAI Diffusion Rule,ā a measure created during former President Bidenās term to restrict global access to advanced artificial intelligence chips for national security reasons, is set to take effect May 15 (though President Trump is reportedly considering an update). The goal? Prevent rival nations like China from gaining ground in an escalating AI arms race.
Worth mentioning: When it comes to D.C. and Beijing, Nvidia is like a monkey in the childās gameāstuck in the middle. 13% of the chipmakerās revenue comes from China, while ~50% is derived from the US.
And when the parents fight, the kids feel itāthe company estimates itāll take a $5.5 billion revenue hit as a result of separate export controls introduced by the Commerce Department last month that apply to its previously compliant chips.
Looking aheadā¦Should tighter US export controls be introduced, analysts say it could prompt Chinese companies, such as tech giant Huawei, to focus on developing better AI chips vs. buying them elsewhere. Nvidia CEO Jensen Huang also said this week that while China may be behind the US in the AI arms raceāitās not that far behind (see: Deepseek).
š Flash poll: In general, do you prefer tighter or looser US export controls when it comes to artificial intelligence chips?
See a 360Ā° view of what pundits are saying ā
Sprinkles from the Left
- Some commentators argue that US export controls did force DeepSeek and other Chinese AI researchers to do more with lessābut at the same time, the export controls helped make progress harder for them, and the Chinese military by extension, which is a good thing.
- Others contend that AI export controls will be unable to stop China from either getting their hands on advanced chips, or finding a way to innovate without themāand the export controls also come with a heavy cost of Chinese retaliation, including limits on access to key minerals.
- āDeepSeekās AI Triumph Shouldnāt Deep-Six Chip Curbsā āBloomberg Editorial Board
- āDeepSeek has created a 21st-century Sputnik momentā āFareed Zakaria, WaPo
- āNvidia Chips Donāt Belong on the Bargaining Tableā āCatherine Thorbecke, Bloomberg
Sprinkles from the Right
- Some commentators argue that the US is right to limit Chinaās access to advanced AI chipsābut the government also needs to clamp down on other countries that consistently supply China with these chips, like the UAE.
- Others contend that when it comes to AI chips, the US needs proactive development efforts and strong export controls to help ensure that another nationāmost likely Chinaādoesnāt surpass us economically and militarily.
- āTo Beat China, America Must Balance AI Innovation with National Securityā āJohanna Yang and Jack Burnham, Foundation for Defense of Democracies
- āTrump Can Keep Americaās AI Advantageā āDario Amodei and Matt Pottinger, WSJ
- āUncertainty threatens as the chip industry waits for Trumpā āChris Miller, American Enterprise Institute
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