NVIDIA Chips Allegedly Smuggled to China via Live Lobsters and Other “Shady” Methods, Claims Anthropic Funded by Amazon

Anthropic, an AI firm based in the United States, has voiced strong objections to NVIDIA’s perspective on the AI Diffusion rule, suggesting that the company’s shipments to China should undergo thorough scrutiny.

Anthropic’s Stance on NVIDIA’s Criticism of the AI Diffusion Rule

Since its inception under the Biden administration, the US AI Diffusion rule has sparked considerable debate. NVIDIA has notably expressed significant dissatisfaction with this policy, largely due to its business interests in the Chinese market. In a surprising turn, Anthropic has opposed any revisions to the AI Diffusion rule, asserting that changing the terms would disproportionately benefit China in the ongoing AI race. They have also directed scrutiny at NVIDIA’s Chinese operations, which prompted a swift response from Team Green.

China has established sophisticated smuggling operations, with documented cases involving hundreds of millions of dollars worth of chips. In some cases, smugglers have employed creative methods to circumvent export controls, including hiding processors in prosthetic baby bumps and packing GPUs alongside live lobsters.

Chinese firms continue to establish shell companies in third countries at a rapid pace to evade export controls.

– Anthropic

Previously, we reported on various GPU smuggling incidents in China, often related to consumer hardware. However, Anthropic’s assertions regarding the smuggling of NVIDIA’s advanced chips are particularly intriguing. They claim that GPUs are being disguised alongside live lobsters during transport, a point that raises eyebrows regarding feasibility. Nonetheless, these claims underscore the lengths to which China appears willing to go, especially as the US enforces export controls to manage chip supplies.

A closer look at Anthropic’s statements indicates their preference for a more stringent export regulation framework. They advocate for a “tiered system”that narrows the threshold for chip exports to certain nations. In response to these remarks, NVIDIA emphasized that American companies should prioritize domestic innovation rather than spreading sensational narratives about smuggling.

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.’

– NVIDIA via CNBC

The ongoing clash between these leading AI firms highlights the increasing tensions within the technology sector, influenced by a shifting geopolitical landscape. As it stands, the AI Diffusion rule is set for implementation on May 15, with further announcements expected soon regarding its implications.

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