NVIDIA (NVDA, Financial) and AI startup Anthropic have entered a rare public dispute over U.S. AI chip export restrictions to China. NVIDIA accuses Anthropic of stifling competition through policy manipulation, mocking its claims of chip smuggling as "absurd." The conflict arose after Anthropic suggested tightening U.S. AI chip and model export controls, citing bizarre smuggling cases to highlight lax enforcement.
The backdrop to this dispute is the upcoming "AI Diffusion Rule," aimed at curbing advanced AI technology exports to China and sensitive regions. Anthropic, backed by significant investments from Amazon (AMZN), relies heavily on NVIDIA's chip technology but pushes for stricter export limits. It argues that controlling computational power is key to AI competitiveness.
NVIDIA counters by highlighting China's substantial AI research resources and warns that regulatory manipulation could monopolize AI advancements in favor of the U.S. The debate underscores the tension in U.S. AI policy between innovation freedom and national security control.
