Tech giant Nvidia says the US has told it to stop shipping some of its advanced artificial intelligence chips to China immediately.

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However, the restrictions were to come into force 30 days after 17th of October.
Then, the President Joe’ Bidem’ s administration revealed actions to stop states such as China, Iran, and Russia from purchasing first-class AI chips provided by Nvidia and other manufacturers.’)
The timelines’ move forward was however not explained by Nvidia.
NVIDIA said in a statement addressed to US SEC, “the Government has effectively ordered such licenses with immediate effect” however it further noted that “the strength of global demand for our products is unlikely to result in any material short term impact”.
The new rules, however, prohibit shipments of the latest generation of Nvidia’s AI chips, initially developed for the Chinese market in compliance with export quotas imposed previously.
The latest maneuver in the tech war between China and United States is the accelerated implementation of the Chinese tariffs.
They were supposed to come into force thirty days from October, 17.
At that time, the Obama administration unveiled the plans for the US government to prevent various nations like China, Iran and Russia from purchasing the advanced AI chips produced by Nvidia & co
Nvidia did not give reasons for pushing up the timeline.
NVIDIA commented to the SEC that the US government imposed these curbs “immediately”, however, NVIDIA also stressed that despite the high global demand for its goods, it is anticipated that this timing will exert no substantial impact on the company’s future short-run earnings.
However, Nvidia’s latest constraints do not permit exports of its new AI chips engineered to meet earlier export rules.
This latest step in the on-going US Technology Battle with China is a rapid ramp up of US curbs.
While Chinese authorities are yet to comment on Nvidia’s announcement, it responded in its backlash to Biden’s decision of imposing new restrictions on the export of more advanced chips that was announced last week.
According to the foreign ministry, it goes against the principles of a market driven economy and a free competition.
This step was perceived as a way of addressing the gaps and loopholes found during the first wave of chip controls made in October 2017.
The US claimed they were meant to stop China from receiving highly sophisticated technologies it would utilize more in developing its military, particularly in areas such as AI.
The share price of Nvidia’s stock increased over three-fold because the company produced AI chips that were in high demand.
The firm became part of the select group of trillionaire stocks in May, joining tech titans Apple, Amazon, Alphabet and MS.
Nvidia, a company based in California, is now in control of the chip demand for AI systems.
There have been no statements issued by chip giant, Advanced Micro Devices, which is another major supplier of AI chips in China. It failed to reply immediately to a BBC enquiry about it.
When the BBC contacted the US Department of Commerce for comments, it declined to do so.
The announcement attracted little attention outside China until Nvidia also came out publicly with its denouncement of the recently imposed new restrictions on advanced chip exports by the Biden administration.

Country’s foreign ministry noted that these tariffs “violate the principles of a market economy and fair competition”.
This is why the recent restriction is viewed as a follow-up after the first wave of clampdown on chips last year.
This was when the U.S. claimed that those measures were meant to ensure China is unable to get advanced technology that can be weaponized, particularly in the field of AI.
The skyrocketing demand for Nvidia’s AI chips has boosted the company’s share price by over 300%, placing it among the world’s top corporations.
The firm became part of the elite companies with a stock market capitalisation exceeding one trillion dollars mark only in May next year joining Apple, Amazon, Alphabet and Microsoft.
Chips for artificial intelligence (AI) are now dominated by companies based in California, led by Nvidia.
No announcement was made by chip giant Advanced Micro Devices (AMD) that is also an artificial intelligence (AI) suppliers’ China about the expedited export restrictions. It refused to comment on a BBC request.
When approached by the BBC, the US Department of Commerce chose not to comment on the Nvidia’s statement.
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