AI<\/a> chips are widely \u200bused to develop cutting-edge AI models, making the company key to the US race against China to build superior AI systems. The US for years has sought to limit China’s access to Nvidia’s most advanced chips, though Chinese companies have repeatedly found ways around those restrictions. Huang supported allowing more exports to China.<\/p>\nHouse Speaker Mike Johnson said Thursday that the growing consensus in Congress favors new restrictions on chip exports to China.<\/p>\n
Here are the proposals Congress is weighing. A handful of lawmakers want to \u200cattach them to the annual defense authorization bill, a must-pass \u2060measure that funds the military and typically attracts bipartisan support. A Senate version of the legislation already includes several of them, including the AI Overwatch Act, Chip Security Act and Match Act.<\/p>\n
GROWING CONGRESSIONAL AUTHORITY OVER CHIP EXPORTS<\/p>\n
US law gives the Commerce Department \u2060broad authority to block or allow advanced chip exports without congressional input.<\/p>\n
Senator Elizabeth Warren, a Democrat from Massachusetts, and Senator Jim Banks, an Indiana Republican, argue export-control decisions with major national security implications should face greater congressional oversight.<\/p>\n
Their proposed AI Overwatch Act would give Congress a larger role in reviewing changes to export rules. The measure is significant for \u200bNvidia \u200bbecause it could make it harder for future administrations to loosen restrictions on sales of \u200bits advanced chips to China.<\/p>\n
Nvidia’s revenue from chip sales to \u200cChinese data centers for now is near zero, according to an August company statement, and the company doesn’t expect that to change in the third quarter.<\/p>\n
TRACKING ADVANCED CHIPS<\/p>\n
The Chip Security Act seeks to address a recurring problem of advanced chips legally sold abroad but later diverted to China.<\/p>\n
The bill would require chipmakers to track the location of advanced AI processors and notify the government if they suspect chips have reached prohibited users.<\/p>\n
For Nvidia, the measure could create new compliance costs and reporting obligations. The Semiconductor Industry Association, whose members include Nvidia, has said mandatory tracking requirements could be costly for the industry.<\/p>\n
PRESSURING US ALLIES<\/p>\n
The Match Act would \u200cpressure US allies to restrict sales and maintenance of advanced chipmaking equipment destined for China.<\/p>\n
Allies \u200bsuch as the Netherlands and Japan are home to ASML and Tokyo Electron , which make tools used \u200bto manufacture semiconductors.<\/p>\n
The bill would not directly restrict Nvidia’s chip sales. Supporters \u200bargue it could make it more difficult for China to develop its own advanced AI chips to compete with Nvidia in \u200cthe long term.<\/p>\n
REMOTE-ACCESS LOOPHOLE<\/p>\n
The Remote Access Security Act targets a \u200bgrowing workaround used by Chinese AI companies.<\/p>\n
Instead \u200bof purchasing advanced chips directly, some Chinese firms rent computing power from overseas data centers equipped with Nvidia chips and access the systems remotely.<\/p>\n
The bill would give the Commerce Department authority to regulate that activity. The legislation passed the House in January and is awaiting Senate consideration.<\/p>\n
Among the proposals \u200bunder consideration, this could have the most direct effect \u200con Nvidia. The company said in July that the measure, if enacted, could have “a material impact on our business.”<\/p>\n
Reuters reported on Thursday \u200bthat Chinese AI companies are rushing to secure access to Nvidia-powered computing capacity outside China, on concerns that the controversy surrounding Huang could \u200baccelerate Washington’s effort to tighten restrictions.<\/p>\n
(Reporting by Courtney Rozen; editing by David Gaffen)<\/p>\n","protected":false},"excerpt":{"rendered":"By Courtney Rozen WASHINGTON, Nov 12 (Reuters) – US lawmakers from both parties are pushing for tougher restrictions…\n","protected":false},"author":2,"featured_media":968707,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,61],"class_list":["post-968706","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/968706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=968706"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/968706\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/968707"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=968706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=968706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=968706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}