Senators Unveil Bipartisan Bill To Block AI Chip Sales To China

US Senators Introduce Bill to Restrict China’s Access to Nvidia H200 AI Chips: Report

  • Bipartisan senators introduced legislation to block easing of U.S. export restrictions on advanced AI chips to China and other countries.
  • The bill would prevent approvals for sales of AI chips more advanced than currently allowed to China, Russia, Iran, or north korea for 30 months.
  • The proposed law requires advance notice to Congress before any future export rule changes after the initial restriction period.
  • The move follows discussions about potential authorization for NVIDIA to sell its H200 chips to China.
  • Nvidia shares rose 2% after the bill’s announcement, with retail investor sentiment staying neutral.

A group of U.S. senators from both parties has proposed a bill that would block the federal government from easing restrictions on the export of advanced Artificial Intelligence (AI) chips to China and several other countries. The legislation, known as the SAFE CHIPS Act, was introduced by Republican Senator Pete Ricketts and Democrat Chris Coons and is co-sponsored by several other lawmakers. The bill seeks to halt any U.S. Department of Commerce approvals for sales of AI chips more advanced than those currently allowed to buyers in China, Russia, Iran, or North Korea for the next 30 months, as reported by multiple news agencies.

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Additionally, if passed, the law would require the Commerce Department to inform Congress at least one month before any potential changes to export rules, even after the 30-month period ends. This provision is designed to ensure ongoing legislative oversight of the process.

The introduction of the SAFE CHIPS Act comes as the administration is reportedly considering whether to permit Nvidia to sell its latest H200 AI chips to China. Earlier this week, Nvidia CEO Jensen Huang stated that he is unsure if China would purchase the H200 chips if restrictions were lifted, according to recent statements he made following a meeting about export controls.

Following news of the bill, Nvidia’s stock price increased by 2%, with after-hours trading remaining steady. Retail investor sentiment on the company stayed neutral over the past 24 hours, while trading message volumes remained low. Over the current year, Nvidia shares have risen 37% and are up around 26% compared to 12 months earlier.

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