Commerce secretary to crack down on Nvidia AI chips redesigned to get around trade curbs

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Secretary of Commerce Gina Raimondo put companies like Nvidia that manufacture artificial intelligence (AI) chips on notice that the agency will move to quickly crack down on redesigned chips intended to get around export controls that apply to adversarial countries like China.

The Commerce Department has put in place export controls designed to restrict the most advanced AI chips from being sold to countries like China where they could serve a dual-use purpose, aiding the country’s military modernization while also boosting its economic and technological competitiveness. Export controls require companies to obtain a license from federal agencies to sell covered products overseas, effectively giving the government a veto over the transaction.

To retain access to lucrative overseas markets affected by the export controls, chipmakers have redesigned modified versions of those chips to make them compliant with the regulations — which has prompted a game of cat-and-mouse as the…

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