Nvidia and Chinese firm Anthropic have been at odds over the smuggling of sensitive electronics from China into the US. The US government’s new AI Diffusion Rules aim to prevent hostile nations like China from gaining advanced AI technologies. However, Nvidia claims that the assertions by Anthropic about Chinese chip smugglers are “tall tales.”
Anthropic has accused Nvidia of downplaying the severity of the issue, stating that the Chinese smuggle sensitive electronics in creative ways, such as CPUs in baby bumps and GPUs alongside live lobsters. While Nvidia’s stance might have merit, there is evidence to support these claims.
Chinese Customs has documented similar smuggling attempts, including systems equipped with discrete graphics cards used for research and development or training smaller AI models. Furthermore, GPU sales in Singapore and Malaysia are under investigation by the US government.
The new AI Diffusion Rules come into force on May 15, and Nvidia is keen to continue supplying high-end GPUs to China. Anthropic, however, wants a steady supply of AI accelerators in the US to reduce competition and promote “alignment with American values and interests.”
As demand for these electronics remains high, it’s likely that smuggling attempts will persist. The US government can’t completely eliminate these activities but can slow them down by implementing regulations. Whether or not this is worth it depends on one’s perspective on AI’s significance.
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Source: https://www.tomshardware.com/pc-components/gpus/despite-nvidia-claims-chinese-smugglers-have-used-live-lobsters-and-fake-baby-bumps-to-traffic-chips