The news: The Biden administration is set to strengthen export controls, limiting shipments of certain AI chips to China, according to the Wall Street Journal. The move could hinder China's AI capabilities amid concerns about hacking and weapons development. Why it matters: The U.S. Commerce Department is expected to release a proposal in July, making it harder to sell specific chips to China without a license. One focus is on Nvidia's A800 chip, designed for the Chinese market in response to earlier restrictions. The company also made adjustments to its flagship H100 chip to ensure compliance. Under the newly proposed controls, even the A800 chip would be subject to export restrictions without licensing. Response: Nvidia CFO Colette Kress said that strong product demand overall means the rules should not materially affect earnings. However, China represents 20-25% of Nvidia's data center revenue, she said, emphasizing the long-term loss of opportunity if exports to China are banned
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