Latest news with #B200s
Gizmodo
5 hours ago
- Business
- Gizmodo
The U.S. May Change Strategy in Its Battle With China for AI Dominance
This weekend, Shanghai was host to China's annual 'World Artificial Intelligence Conference,' a government-organized AI showcase packed with tech giants from both China and the U.S. including Huawei, Tesla, and Amazon. The theme was 'Global Solidarity in the AI Era,' and Chinese Premier Li Qiang opened the conference with a sweeping proposal: the establishment of a global AI cooperation organization, potentially headquartered in Shanghai. The Chinese foreign ministry has since released an action plan calling for international collaboration in AI through open-source communities and joint research. While China's AI messaging is starting to sound like 'AI for all,' the United States is still split on its own battle tactic. The Trump administration has welded an isolationist trade approach globally, and particularly with China when it comes to AI and technology. But with recent policy changes, that hardline has seemed to soften as Washington is split between two camps on how to approach the battle for AI dominance with China: that is, whether to continue with a heavily protectionist approach or join China's calls for solidarity. Beijing's invitation to rally behind a Chinese vision of AI cooperation landed in the middle of a tense year in AI geopolitics. The United States has been the global leader in AI development, but domestic confidence in America's competitive edge was shaken earlier this year. Following the meteoric success of Chinese AI company Deepseek's low-cost yet high-performance model, the Trump administration took a hard line on advanced technology exports to China. The administration attempted to slam the brakes on Beijing's hardware access by further tightening existing export controls on advanced Nvidia chips to China, in an effort to curb the country's rapid innovation, starve its AI ecosystem, and preserve U.S. dominance. But the ban hasn't gone exactly to plan. A Financial Times report from last week revealed that roughly $1 billion worth of Nvidia's banned advanced B200 chips had been smuggled into China in the three months since the export controls went into effect. The administration changed course on the ban and quietly retreated from its hard-line stance earlier this month, when Nvidia CEO Jensen Huang announced that the company would resume selling its older H20 chips legally to China. Notably, the FT found that Chinese black market demand for the smuggled B200s faced a noticeable drop after the relaxation of the H20 ban, suggesting that Chinese companies would rather take legal access to older chips over the highest technology illegally (companies who buy smuggled chips can't take advantage of important Nvidia customer support when installing them in their own data centers). The implications of this finding could throw the logic of blanket export bans into question. China isn't proposing global solidarity in AI development out of the goodness of its heart. Open cooperation and joint research not only helps the development of AI technology in China, but it is also a soft power play by China. By centering this cooperation in Shanghai and under Chinese terms and values, Beijing is trying to cement its position in the global AI trade, potentially achieving global AI dominance over the U.S. But Trump has made it clear that he wants America to win that battle. 'America is the country that started the AI race, and as President of the United States, I'm here to declare that America is going to win it,' Trump said while announcing the measures last week. The U.S. government's fears are twofold when it comes to AI and China: losing economic edge and jeopardizing national security. Currently, the Chinese AI industry is dependent on American chipmakers like Nvidia. Skeptics of blanket export bans say that if China has no access to advanced American AI technology, it will have no choice but to develop its own. And if China builds a true rival to Nvidia and gains self-sufficiency in AI hardware, the U.S. may lose its grip on the global AI market. At the center of these concerns is Chinese tech giant Huawei, which is already developing AI computing systems that rival Nvidia's most advanced products. Advocates of this approach in Washington hope to have more control over the scale of innovation in China by flooding the market with American products. And especially by controlling what chips go into the country, the U.S. could help curb the proliferation of more advanced chip technology in China. The Trump administration's recent move to ease restrictions on older Nvidia chip models could be following this logic, and might be bearing its fruits already, at least according to the Financial Times' findings. It's two steps forward and one step back. Although the U.S. has seemed to relax the rules on chip exports into China, the Trump administration is eager to continue the government's hard line based on the President's AI Action Plan that was unveiled last week. 'Advanced AI compute is essential to the AI era, enabling both economic dynamism and novel military capabilities,' the administration wrote in the action plan. 'Denying our foreign adversaries access to this resource, then, is a matter of both geostrategic competition and national security. Therefore, we should pursue creative approaches to export control enforcement.' Proponents of stricter export controls have sizable national security concerns when it comes to China's AI development. Chinese AI companies proved that you don't need the latest hardware to make AI that outperforms benchmarks, with the release of both Deepseek and Alibaba-backed Kimi K2 this year. Even though newer chips are kept out of China while the older ones dominate chip sales, that does not necessarily mean that state-of-the-art AI models that rival or even exceed American ones can't be developed. Going even beyond just market competition, these models could pose security risks when deployed for use in the Chinese military. While China and the U.S. are not in direct military conflict, tensions are high between the two superpowers, particularly over China's territorial claims in Taiwan and the South China Sea and American involvement in the region. All of this comes as U.S. and China trade envoys are meeting in Stockholm this week to discuss what exactly the long game is here. The countries are expected to decide on a tariff agreement or opt for yet another extension of the previously granted truce that is set to expire on August 12. The outcome of these talks, no matter what, is likely to have implications going even beyond what's stated on paper. It could very well set the stage for the next phase of the war over global AI dominance.
Business Insider
5 days ago
- Business
- Business Insider
Nvidia AI Chips Worth $1B Were Smuggled to China to Defy Trump, Claims Report
U.S. semiconductor giant Nvidia (NVDA) stock edged up today despite reports that its chips were smuggled into China to beat President Trump's export controls. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Beating Controls The Financial Times reported today that Nvidia's high-end B200 processors worth around $1 billion were smuggled to China in the three months after Washington tightened chip export controls at the height of the tariff trade war between the two nations. The FT stated that the processors, banned for sale in China, are widely available on a thriving Chinese black market for U.S. chips. The FT report cited sales contracts, company filings and insider information. It stated that in May, multiple Chinese distributors started selling B200s to suppliers of data centers that serve Chinese AI groups. It added that the most likely source of the restricted chips is Southeastern Asian nations. Nvidia, led by chief executive Jensen Huang, told Reuters that building data centers with smuggled products is inefficient both technically and financially, as the company only offers service and support for authorized products. It has said that there is no evidence of any 'AI chip diversion.' There is no suggestion the company is involved in or has knowledge of its restricted products being sold to China. AI Race Nvidia last week said it would be allowed to resume sales to China after the Trump administration reversed an export restriction on the sales of chips such as H20. The curbs were imposed in April. It comes as the U.S. said it is looking to relax AI export controls and boost infrastructure investment as part of its newly unveiled AI action plan. At the heart of it is the continued battle for global AI supremacy between the U.S. and China. As can be seen below, Nvidia, which relies heavily on the Chinese market, has good reason to find a careful balance between the two. That includes pledges from Nvidia to invest billions of dollars in U.S.-manufactured chips and electronics over the next four years, as well as regular trips to China to reaffirm its commitment to the country. Is NVDA a Good Stock to Buy Now? On TipRanks, NVDA has a Strong Buy consensus based on 34 Buy, 3 Hold and 1 Sell ratings. Its highest price target is $250. NVDA stock's consensus price target is $182.49, implying a 5.52% upside.
The Hindu
5 days ago
- Business
- The Hindu
Nvidia AI chips worth $1 billion entered China despite U.S. curbs: Report
Nvidia's advanced artificial intelligence chips worth at least $1 billion were smuggled to China in the three months after Washington tightened chip export controls, the Financial Times reported on Thursday. The AI chip designer's high-end B200 processors, banned for sale in China, is widely available on a thriving Chinese black market for U.S. chips, the report said, citing sales contracts, company filings and multiple people with direct knowledge of the deals. Nvidia told Reuters that building data centers with smuggled products is inefficient both technically and financially, as the company only offers service and support for authorized products. The U.S. Department of Commerce, White House and Thai government did not immediately respond to requests for comment. Reuters could not independently verify the FT report. In May, multiple Chinese distributors started selling B200s to suppliers of data centers that serve Chinese AI groups, according to the report. The U.S. and China are battling for global dominance in AI and other cutting-edge technologies, triggering a tightrope walk for companies such as Nvidia between the world's two largest economies. Nvidia last week said it would be allowed to resume sales to China after the Trump administration reversed an export restriction on the sales of chips such as H20. The curbs were imposed in April. In the three months before that, Chinese distributors from Guangdong, Zhejiang and Anhui provinces sold Nvidia's B200s, as well as other restricted processors such as the H100 and H200, according to the report. Southeast Asian countries have become markets where Chinese groups obtained restricted chips, the report said, citing industry experts. The U.S. Commerce Department is discussing adding more export controls on advanced AI products to countries such as Thailand as soon as September, the report said.
Yahoo
5 days ago
- Business
- Yahoo
Nvidia's Flagship AI Chips Flood China's Shadow Market
Nvidia (NASDAQ:NVDA) saw its shares rise after the Financial Times revealed about $1 billion of its B200 AI chips slipped through export controls into China. The stock rose 1% to $900, suggesting investors aren't spooked by the black?market buzz. According to the FT report, those banned processors were funneled through brokers into a lucrative Chinese underground market for data?center gear, bypassing the April curbs on H200 and B200 exports. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Nvidia told Reuters it has no evidence of involvement and only supports authorized products, warning that smuggled chips tend to run hot and break down. The news comes as the White House reversed some H200 restrictions under its new AI Action Plan and promised billions in U.S. chip investments. Meanwhile Chinese distributors keep hawking B200s to local AI operators even as Nvidia pledges to ramp up U.S. fabs and sustain its China footprint. Morgan Stanley analysts note that black?market volumes are tiny next to Nvidia's roughly 12,000?unit quarterly shipments, so earnings risk appears minimal. Still, security experts caution that this shadow trade could invite stronger enforcement and ramp up U.S.?China tech tensions. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Nvidia's Flagship AI Chips Flood China's Shadow Market
Nvidia (NASDAQ:NVDA) saw its shares rise after the Financial Times revealed about $1 billion of its B200 AI chips slipped through export controls into China. The stock rose 1% to $900, suggesting investors aren't spooked by the black?market buzz. According to the FT report, those banned processors were funneled through brokers into a lucrative Chinese underground market for data?center gear, bypassing the April curbs on H200 and B200 exports. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Nvidia told Reuters it has no evidence of involvement and only supports authorized products, warning that smuggled chips tend to run hot and break down. The news comes as the White House reversed some H200 restrictions under its new AI Action Plan and promised billions in U.S. chip investments. Meanwhile Chinese distributors keep hawking B200s to local AI operators even as Nvidia pledges to ramp up U.S. fabs and sustain its China footprint. Morgan Stanley analysts note that black?market volumes are tiny next to Nvidia's roughly 12,000?unit quarterly shipments, so earnings risk appears minimal. Still, security experts caution that this shadow trade could invite stronger enforcement and ramp up U.S.?China tech tensions. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
