US to restrict exports of advanced AI chips to China, others

The news: The Biden administration will halt shipments of more advanced artificial intelligence chips designed by US companies, as part of measures to stop China from receiving cutting-edge US technologies to strengthen its military.

The numbers: Shares in semiconductor chip maker Nvidia fell 3.7% on Nasdaq on news of the fresh curbs, while shares in AMD and another rival AI chipmaker, Intel, dropped more than 1% each.

The context: The rules go into effect in 30 days and also restrict a broader swathe of advanced chips and chip-making tools to a number of countries apart from China, including Iran and Russia. US Commerce Department Secretary Gina Raimondo said the new measures would close loopholes in regulations released last October and will be updated "at least annually”. They will exempt most consumer chips used in laptops, smartphones and gaming, and China will still import hundreds of billions of dollars worth of US semiconductors, she said.