Anthropic, Nvidia Clash Over U.S. AI Chip Rules

A public dispute has erupted between Amazon-backed AI startup Anthropic and chipmaker Nvidia over the 'AI Diffusion Rule,' a set of U.S. export restrictions on advanced AI chips set to take effect on May 15. Anthropic supports the stricter controls, citing national security concerns and providing evidence of Chinese smuggling tactics, while Nvidia argues that innovation should be prioritized over additional regulations, warning that such measures could hurt its revenue from China. The feud has also affected crypto markets, with AI-linked tokens dropping sharply after Nvidia's criticism. Evidence from Chinese customs has documented some of the smuggling methods Anthropic referenced, adding further complexity to the debate. The dispute highlights broader geopolitical tensions as U.S. political parties reconsider the direction of AI export controls. The conversation marks a shift from corporate investment announcements to regulatory and security concerns in the AI industry.