U.S. Tightens Restrictions on Advanced Chip Sales to China, Hampering AI Progress

The U.S. is tightening restrictions on selling advanced semiconductors and related equipment to China that could be used for AI and supercomputing.

The new rules will likely halt most U.S. shipments of advanced chips to Chinese data centers used for AI model development.

U.S. chipmakers may now need licenses to sell advanced chips and manufacturing equipment to China, hurting revenues.

The rules aim to limit China's progress in AI and advanced computing for military applications.

The restrictions could weaken China's economy long-term as AI transforms industries, though may also spur China to develop domestic chip capabilities.