Nvidia Denies AI Chip Diversion as US Considers Stricter Semiconductor Export Controls

Nvidia CEO Jensen Huang has pushed back against allegations of AI chip diversion to China, even as the WHITE House maintains its ban on H20 chip sales to the country. The Commerce Department is reportedly drafting stricter rules that could extend export limits to Southeast Asian nations, seen as potential backdoor channels for semiconductor acquisition.

The Biden administration's AI diffusion rule continues to draw criticism from both trading partners and tech giants like Nvidia. Commerce officials have pledged to replace the controversial framework with a more comprehensive strategy, though doubts persist about whether the proposed changes adequately address security concerns surrounding international chip usage.

Market observers note these developments could impact semiconductor-related crypto projects, particularly those focused on AI and decentralized computing. The ongoing tension between innovation and national security creates uncertainty for blockchain initiatives relying on advanced chip technology.