AI giant Nvidia and startup Anthropic are engaged in a rare public dispute over U.S. chip export restrictions set to take effect on May 15. The restrictions are designed to keep powerful AI chips out of the hands of the Chinese.
CNBC reports that in an unusual public disagreement, Nvidia and AI startup Anthropic have clashed over the upcoming U.S. chip export restrictions, known as the “AI Diffusion Rule.” The rule, set to take effect on May 15, aims to control the export of advanced AI chips and model weights to prevent rival nations like China from gaining ground in the escalating AI arms race.
Anthropic, backed by billions from Amazon, argued for tighter controls and enforcement in a blog post on Wednesday. The company claimed that Chinese smuggling tactics involved hiding chips in “prosthetic baby bumps” and packing them “alongside live lobsters.” Anthropic proposed lowering the export threshold for Tier 2 countries, tightening the rules to reduce smuggling risks, and increasing funding for enforcement, stating that maintaining America’s compute advantage through export controls is crucial for national security and economic prosperity.
In response, an Nvidia spokesperson sharply criticized Anthropic, calling their claims “tall tales” and blasting the use of policy to limit competitiveness. The spokesperson stated that American firms should focus on innovation and rise to the challenge rather than manipulate regulators to capture victory in AI.
The spokesperson stated: “China, with half of the world’s AI researchers, has highly capable AI experts at every layer of the AI stack. America cannot manipulate regulators to capture victory in AI.”
An Anthropic spokesperson responded: “Anthropic stands by its recently filed public submission in support of strong and balanced export controls that help secure America’s lead in infrastructure development and ensure that the values of freedom and democracy shape the future of AI.”
Nvidia CEO Jensen Huang recently visited Chinese trade officials in mid-April and praised China’s progress in AI during a visit to Washington, D.C. on Wednesday. Huang acknowledged China’s incredible capabilities in computing and network technology, stating that they have made enormous progress in recent years and are not behind the U.S. in AI.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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