The US government has reversed its ban on exporting certain AI chips to China, allowing companies like Nvidia and AMD to resume sales. This decision arrives just months after the initial ban, with the US now permitting shipments of H20 processors and MI308 chips, designed to meet specific export restrictions. The move has boosted shares for both companies.
While seen as a financial win for US chipmakers, the reversal sparks debate about America's competitive edge in the AI industry. China, home to roughly half of the world's AI development companies, gains access to vital computing capacity. The US will collect a 15% fee on sales. Some analysts suggest China may view this as a temporary opening and continue to pursue self-reliance in chip production.
Concerns persist that even limited chip exports could accelerate China's AI development for military modernisation, surveillance, and cyber warfare. However, others argue that restricting access could backfire, pushing China to become more self-sufficient and potentially weakening the US industry. The long-term impact on the US-China tech rivalry remains to be seen.
