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- 🤖 U.S. Blocks AI Chip Exports to China
🤖 U.S. Blocks AI Chip Exports to China
PLUS: SEC Predicts Unavoidable Financial Crash
James Roesser
October 18, 2023
Welcome back AI enthusiasts!
In today’s AI Report:
🇨🇳U.S. Blocks AI Chip Exports to China
📉SEC Predicts Unavoidable Financial Crash
🛠5 Trending Tools
💰Venture Capital Updates
💼Who’s Hiring?
Read Time: 3 minutes
🗞RECENT NEWS
GLOBAL NEWS
🇨🇳U.S. Blocks AI Chip Exports to China
The U.S. Department of Commerce plans to prevent selling more advanced artificial intelligence chips to China.
Key Details:
The U.S. government claims these new rules are designed to limit loopholes that surfaced after last year’s restrictions on AI chip exports.
The previous restrictions banned the sale and distribution of Nvidia H100 processors to AI firms in China.
In response, Chinese companies like Baidu, ByteDance, and Alibaba purchased $4B worth of A800 GPUs, a weakened version of Nvidia’s cutting-edge data center chips, to comply with U.S. regulations.
Senior administration officials informed reporters in a briefing on Tuesday that these new rules are tailored to ban those chips.
Why It’s Important:
These restrictions will affect the volume of chips sold by Intel and AMD, hampering the sale and export of Chinese semiconductor manufacturing equipment.
China doesn’t possess the correct infrastructure or knowledge to produce these chips. So, without stockpiled Nvidia chips, they can’t pursue training AI models and must halt Large Language Model (LLM) projects.
The Biden administration is blocking China’s access to advanced AI chips. However, Taiwan Semiconductor Manufacturing Company Limited (TSMC) builds Nvidia’s Graphics Processing Units (GPUs). The restriction could fuel China’s desire to invade Taiwan.
U.S. SECURITIES AND EXCHANGE COMMISSION
📉SEC Predicts Unavoidable Financial Crash
Gary Gensler, Chair of the Securities and Exchange Commission, believes AI could cause a “nearly unavoidable” financial crisis if regulators don’t enforce applicable laws to prevent market manipulation.
Key Details:
The AI market lacks a diversity of AI models. While various open-source models exist, most corporations rely on a few tools developed by a select group of entities (e.g., OpenAI’s ChatGPT).
Implementing AI regulation would be a “horizontal issue” since many institutions rely on the same underlying base model or data aggregator.
Gensler explained: “It’s a hard financial stability issue to address because most of our regulation is about individual institutions, individual banks, individual money market funds, and individual brokers.”
Why It’s Important:
AI has a robust economics of networks (i.e., as more individuals use a product or service, the more valuable it becomes to each individual) because it grows exponentially with increased user interaction and data input.
The benefits of these Network Effects (NFXs) multiply as AI systems become more interconnected. Companies that harness these NFXs earlier will gain a competitive edge, creating monopolistic or oligopolistic scenarios and amplifying systematic risk.
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💰VENTURE CAPITAL UPDATES
💼WHO’S HIRING?
Cohere (San Francisco, CA): Revenue Operations Manager
Unlearn.AI (San Francisco, CA): Software Engineer, Machine Learning
Discord (Remote): Senior Data Scientist, Machine Learning (NLP)
🤖PROMPT OF THE DAY
CUSTOMERS
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