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Biden Plans Additional Limits on Nvidia AI Chip Exports

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Bloomberg Mercury Jan 9 17:32 · 11.4k Views

President Joe Biden’s administration plans one additional round of restrictions on the export of artificial intelligence chips from the likes of Nvidia Corp. Ian King reports on "Bloomberg The Close."

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Transcript

  • 00:00 This is, according to people familiar with the matter, exactly what does this
  • 00:04 new directive
  • 00:05 really do when it comes to AI chips?
  • 00:08 I mean, this is another way of kind of slicing the cake and creating
  • 00:12 more restrictions.
  • 00:14 What has happened up until now has been, look, hey, this is a chip beyond a certain capability can't be sent to such and such a place.
  • 00:21 All this is doing is a is a more broad
  • 00:23 sort of swipe at restricting the spread of computing power, of the use of AI power,
  • 00:29 of saying to certain nations around the world, hey,
  • 00:31 if you're with us, then you can have access to this.
  • 00:33 But guess what, if you're not, we have to control where this
  • 00:37 computing power is is deployed.
  • 00:39 I am curious, Ian, does this have a material impact
  • 00:42 on the companies on their bottom lines, these restrictions?
  • 00:45 Yeah.
  • 00:45 I mean, the obvious answer is going to be, first of all, is it's going to get implemented.
  • 00:49 Secondly, we'll have to wait and see, as it will, you know,
  • 00:53 take a lot of time to sort of pass how these restrictions
  • 00:56 will affect what companies do.
  • 00:58 And clearly
  • 00:59 they're going to look very closely at what they can get away with.
  • 01:01 And we've seen in the past
  • 01:03 with these restrictions, you see an initial essential shutdown of shipments to certain places
  • 01:08 and then sort of gradually comes back as the lawyers work out what they can get away with.
  • 01:12 So it's going to be
  • 01:13 probably choppy to start off with.
  • 01:15 It's going to be to start off with Ian, with your decades of experience covering semiconductor companies from Asia as well as the US, what does this mean for the Asian chip makers?
  • 01:24 Does this put them in a better competitive position?
  • 01:27 Not really, no.
  • 01:28 I mean, they're part of, as we know, it's called it.
  • 01:30 They're part of the same food chain, you know, got Samsung Electronics
  • 01:34 in South Korea.
  • 01:35 It's doing well or not in this business because it's applying NVIDIA with
  • 01:39 memory.
  • 01:40 TSMC in Taiwan, it's doing well or not because it's making chips for NVIDIA or AMD or even Intel these days, right?
  • 01:48 So
  • 01:48 everything is kind of interlinked.
  • 01:50 You would have to look at some of the indigenous efforts in China
  • 01:54 if they're capable of getting to that case.