Is China Smuggling Nvidia’s Chips via Lobsters? The Company Denies Claims!

TECH NEWS – Anthropic, an American AI company, criticizes Nvidia’s position on the AI diffusion policy.

 

The US AI diffusion rule has been the subject of much controversy since it was originally announced by the Biden administration. Nvidia has been the most hostile to it, mainly because of its ties to the Chinese market. Interestingly, Anthropic is strongly opposed to revising the rule, arguing that the ultimate benefit of changing the criteria would favor China in the AI race. Some comments were also made about Nvidia’s dealings with China, and Nvidia was surprisingly quick to respond.

China has developed sophisticated smuggling operations. Documented cases involve hundreds of millions of dollars worth of chips. In some cases, smugglers have used creative methods to circumvent export controls, including hiding processors in prosthetics and packaging GPUs next to live lobsters. Chinese companies continue to rapidly set up front companies in other countries to evade export controls.

Anthropic has also made some interesting claims about AI chips alone: they believe that individuals are smuggling Nvidia’s high-end chips into China by packaging GPUs alongside live lobsters, although we are not sure how that would work. China seems to be a bit desperate to secure the country’s chip supply…

Anthropic’s comments clearly show that the company is in favor of a tiered system. The company would like to see the Trumps further tighten controls on chip supply by lowering the threshold for chips that can be exported to nations. Nvidia was quick to respond, arguing that AI companies should focus on building U.S. businesses rather than telling stories to the public. With that, Nvidia essentially refuted the whole thing.

So far, we haven’t seen US companies fighting over policies that affect them, but they seem frustrated by the changing geopolitical landscape. For now, all that is certain is that the AI proliferation policy will be in place by May 15, and it will surely be announced within the next few days…

Source: WCCFTech, Anthropic, CNBC

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