25 years ago, chip manufacturing gia Nvidia (NVDA) iroduced the GeForce 256, the world’s first graphics processing unit (GPU).
Nvidia’s GPU became the foundation for the big explosion of modern artificial ielligence that occurred a decade later. That’s what the company said in its October preseation to investors: “Today, the world recognizes GPUs not only for revolutionizing gaming, but as the driving force behind the AI industrial revolution.”
In this preseation, it was also meioned that Nvidia’s GeForce 256 ushered in an era in which gaming, computing, and artificial ielligence evolved together and fundameally advanced eertainme technology and society; But these AI advances have recely run io trouble on Wall Street.
After nearing an all-time high on Oct. 14, Nvidia shares fell the next day on news that the company may impose further restrictions on its high-end chip exports.
US officials are considering restricting the sale of advanced artificial ielligence chips from Nvidia and other US companies to some couries, according to a report from Bloomberg News.
This idea has received more atteion in rece weeks and is still in its early stages and is still under investigation.
The Biden administration has so far restricted the shipme of artificial ielligence chips to more than 40 couries in the Middle East, Africa and Asia due to concerns about the transfer of these technologies to China.
The policy is based on a new framework set up to ease the licensing process for sending AI chips to data ceers in couries such as the UAE and Saudi Arabia.
Close cooperation ASML With Nvidia
It was a tough day for the chip industry; As stocks ended the day lower, the nearby index, which is mostly made up of technology companies, fell more than 1 perce. This comes after a disappoiing report from European chipmaker ASML.
The report, which was leaked ahead of schedule, warned that demand would remain subdued in 2025 outside of the AI sector.
ASML CEO Christophe Fouquet said in the company’s financial report: “Although there is still growth and great poteial in the AI sector, other market segmes need more time to improve.” The improveme appears to be more gradual than previously aicipated.
Bypassing sanctions by Chinese developers
The Chinese have also found a way to use American chips. According to a Wall Street Journal report in August, Chinese developers are taking advaage of them without having to import the chips io China.
These developers work with middlemen to access processing power overseas and sometimes use techniques common in the cryptocurrency world to hide their ideity.
In response to these restrictions, companies and iermediaries in Dubai and America have invested in purchasing servers equipped with Nvidia’s H100 chips.
According to him, the manager of one of these companies, these servers are located in Australia and help impleme artificial ielligence algorithms for Chinese companies. “The demand is there,” he said. There is also profit. So, naturally, someone will meet this need.”
Meanwhile, the gias have said that export rules do not limit access to US cloud services that use Nvidia chips by Chinese companies or their foreign affiliates.
