MF3d/E+ via Getty Images
- The U.S. government’s ban on the export of high-quality chips used for artificial intelligence applications to China is limiting sector growth in the PRC, according to a report by The Information.
- Chinese tech firms are placing restrictions on the number of users with access to generative AI models and applications to avoid running out of computing capacity, the report finds.
- Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU) and ByteDance (BDNCE) have reportedly created waiting lists for corporate customers wanting access to their large language models through application programming interfaces. This is due to the shortage of advanced AI chips, such as those made by Nvidia (NVDA), needed to run datacenters.
- Alibaba and Baidu dipped 2% and 1%, respectively, on Thursday.
- The US first implemented the export ban in 2022. It is considering even stronger measures.