Nvidia publicly clashed with Anthropic on Thursday over artificial intelligence policy, with U.S. chip restrictions about to take effect.
“American firms should focus on innovation and rise to the challenge, rather than tell tall tales that large, heavy, and sensitive electronics are somehow smuggled in ‘baby bumps’ or ‘alongside live lobsters’,” a spokesperson for Nvidia said. This comes shortly after Amazon-backed AI startup Anthropic said that Chinese smuggling tactics involved chips hidden in “prosthetic baby bumps” and “packed alongside live lobsters” while discussing the need for tighter control and enforcement.
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Chip restrictions from former President Joe Biden’s term, called the “AI Diffusion Rule,” are set to take effect May 15. These restrictions enforce global controls over AI chips to prevent rival nations like China from advancing, during a time of intense competition over AI. This contention has only increased with President Donald Trump’s reported work on updating these restrictions.
Anthropic, which relies heavily on Nvidia hardware to train its models, is calling for tighter restrictions that could limit Nvidia’s overseas business and revenue from chip sales.The company argued that the export threshold should be lowered for tier 2 countries, tightening the rules to reduce smuggling risks, and increasing funding for enforcement.
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“Anthropic stands by its recently filed public submission in support of strong and balanced export controls that help secure America’s lead in infrastructure development and ensure that the values of freedom and democracy shape the future of AI,” a company spokesperson said in a statement.
Nvidia, on the other hand is reportedly about to take a hit due to the tightening export laws. The company said in an official filing that its H20 AI chip, which was designed specifically for the Chinese market, to comply with export controls, would now require a special license to sell there for the “indefinite future.”