The ongoing tech war between the United States and China saw a major development this week. The U.S. government ordered AMD and NVIDIA to stop shipping certain products to China. The order prevents the sale of specific AI chips to China due to risks of military use in China or Russia.
"The USG indicated that the new license requirement will address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia," said an SEC filing.
The AI chips in question can power features such as image recognition and scanning large libraries of data, both of which can be used for military purposes.
China and the United States have been on rocky ground when it comes to technology for several years. The U.S. government banned the sale of chips made with tech from the country to Huawei in 2020.
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