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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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NBC New York broke the news in New York, United States on Thursday, May 1, 2025.
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