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Nvidia (NVDA) closed 2% lower after the Biden administration introduced new export restrictions on advanced AI chips to adversaries like China.
Christopher Miller, author of Chip War: The Fight for the World’s Most Critical Technology and Tufts professor, explains on Market Domination Overtime that these rules started under the Trump administration to limit China’s access to cutting-edge technology, like chips.
While Nvidia and other chipmakers oppose the rules, Miller tells hosts Josh Lipton and Julie Hyman the US still leads and wants to lead the AI chip market.
"Biden has added new restrictions on the sale of AI chips to China, but that's very much in line with what the Trump administration had started," Miller notes, adding that many Republicans may support this move.
Addressing reports that some Nvidia chips still make their way into China via third parties, Miller explains that it "shows just how dependent China is on actually buying AI chips from the rest of the world, and so as long as China is a buyer of AI chips, it's unlikely to be a major seller of them to third countries."
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This post was written by Josh Lynch