The US government announced on Monday it would further restrict AI chip and technology exports. The regulation divides the world into three tiers. About 18 countries, including Japan, Britain, South Korea and the Netherlands, will be exempt from the rules. Another 120 other countries, including South Africa, Singapore, Israel, Saudi Arabia and the United Arab Emirates will face country caps. Arms-embargoed countries like Russia, China and Iran will be barred from receiving any high-end chips at all.
The move has dented the Nvidia share price this week, since they are by far the most important AI chip maker. They have fallen from a high above $153 per share to the current level, about $134 per share.
I think that these restrictions are a terrible idea. My belief is that free trade results in better outcomes for all, including powerful nations. I may be naive, but I expect these regulations will delay innovation and have unintended, negative consequences.
The leadership team at Nvidia agrees with me. A company spokesperson called the new rules “sweeping overreach” and said the White House would be clamping down on “technology that is already available in mainstream gaming PCs and consumer hardware”.