What happened
The US government reversed its ban on exporting specific AI chips to China, permitting companies like Nvidia and AMD to resume sales of certain models. This action, occurring months after the initial prohibition, allows shipments of H20 processors and MI308 chips, which are specifically designed to comply with defined export restrictions. The US will collect a 15% fee on these sales.
Why it matters
This policy reversal introduces a visibility gap regarding the end-use of advanced AI computing capacity, increasing exposure for national security and intelligence operations. While specific chips are restricted, the renewed access to H20 processors and MI308 chips raises due diligence requirements for monitoring potential acceleration of foreign AI development, particularly concerning military modernisation, surveillance, and cyber warfare capabilities. This places an increased oversight burden on intelligence analysts and compliance teams responsible for export control adherence.
