What happened
The US government has permitted the sale of Nvidia H200 chips to China, with a potential 25% revenue share for the US, though these exports are not yet finalised. This decision is under scrutiny by US lawmakers, who have introduced the bipartisan Secure and Feasible Exports (SAFE) Chips Act. This proposed legislation aims to halt export licenses for advanced AI chip sales to China and Russia for a minimum of 30 months, thereby tightening controls on technology transfer.
Why it matters
The ongoing scrutiny and proposed legislation regarding permitted advanced AI chip sales introduce a significant policy ambiguity and an increased due diligence requirement for technology export controls. This raises exposure for national security and intelligence teams to the potential for unintended technology transfer. The burden falls on export control, compliance, and legal teams to navigate the evolving regulatory landscape and assess the stability of current export permissions.
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