Biden Tightens Export Controls on Nvidia Chips to China, Hampering AI Ambitions Despite Advanced Models

Biden administration announced new restrictions on Nvidia's AI chip exports to China, including A800 and H800 chips designed to bypass previous bans.

Original chip bans targeted China's military use, but impacted the country's AI startups relying on Nvidia chips. Companies rushed to stockpile chips before bans.

Chip bans have not stopped Chinese tech giants like Baidu from pursuing AI ambitions. Baidu claims its new Ernie 4.0 matches GPT-4.

China requires LLM services get a license before serving public users, a hurdle for startups.

Shortage of high-end chips and censorship rules benefit generative BI services in China which need less computing power and are easier to control.