Nvidia, Anthropic Clash Over AI Chip Export Controls Ahead of Restrictions

Nvidia and Anthropic are publicly clashing over U.S. export controls on advanced AI chips, particularly as the 'AI Diffusion Rule' restricting exports to China is set to take effect soon. Anthropic, backed by Amazon, supports stricter export controls, emphasizing national security concerns and citing dramatic claims of AI chips being smuggled into China using methods such as prosthetic baby bumps and shipments of live lobsters. Nvidia, whose chips are critical for training AI models, has pushed back, dismissing Anthropic's smuggling claims as exaggerated and arguing that tighter restrictions would harm U.S. innovation and competitiveness. The debate reflects broader concerns over maintaining America's technological edge, with Anthropic advocating for stronger enforcement and Nvidia warning that such policies could inadvertently boost foreign rivals like Huawei. The dispute comes as lawmakers and industry leaders scrutinize both U.S. export policies and the potential for Chinese firms such as Huawei to gain ground in AI hardware. Anthropic also calls for increased government funding to enforce the rules and urges no delay in their implementation, while Nvidia warns of negative impacts on the U.S. chip industry.