Nvidia Denies Smuggling Claims While Developing New AI Chips for China
- On May 1, 2025, AI startup Anthropic accused Nvidia chips of being smuggled into China using methods like live lobsters and prosthetic baby bumps.
- These claims emerged amid tensions over the AI Diffusion Rule, a U.S. Chip export restriction effective May 15, aiming to limit China’s AI advancement.
- Anthropic, backed by Amazon, supports stronger export controls and enforcement due to strategic concerns over compute access, while Nvidia disputes the smuggling claims sharply.
- Nvidia’s spokesperson called such smuggling stories 'tall tales' and urged American firms to focus on innovation rather than imply electronics are smuggled in 'baby bumps' or with lobsters.
- The dispute reflects broader U.S.-China AI competition, with Nvidia warning export restrictions risk $5.5 billion losses and Anthropic emphasizing national security and economic implications.
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Nvidia Slams Amazon-Backed Anthropic Over Support For Stricter China Chip Bans, Mocks 'Tall Tales' Of Smuggling With Live Lobsters And 'Baby Bumps' - Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)
On Thursday, in a rare and sharp public clash, NVIDIA Corp. (NASDAQ:NVDA) targeted artificial intelligence startup Anthropic, which is backed by Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) for supporting tighter U.S. restrictions on AI chip exports to China. What Happened: Nvidia slammed Anthropic following the startup's blog post urging stricter enforcement of U.S. chip export controls. Anthropic stated that AI…
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