The public is largely skeptical about the effectiveness of US legislation to prevent AI chip smuggling. Concerns include potential trade tensions and ineffective measures that might drive allies closer to China. Criticism revolves around perceived protectionism, hypocrisy in free market principles, and doubts about genuine impact on stopping bad actors.

US Government

Switzerland

China

The restrictions are weird because part of chips are being developed and tested in countries which are also being restricted.  
  
Also china have been buying massive amount of GPUs through shell companies and other options. I'm sure with the 1700 non counting purcahses, they will just buy under that limit through dozens of companies just to stay under the radar.  
  
I doubt this is really going to make a difference.

GoodBadUserName

Article:

&gt;__Switzerland is excluded by the US from the allied countries for unlimited access to chips required for artificial intelligence.__

&gt;The US recently changed the rules for the export of products related to artificial intelligence. Only countries that are considered allies are now allowed to access these computer chips. And Switzerland is not one of them.

&gt;Only 18 countries are considered trustworthy allies in the USA, including France, Germany and Japan. According to Washington, these nations are worthy of unrestricted access to these very powerful computer chips, which are manufactured exclusively by US companies.

&gt;This new regulation will come into force in four months. After that, Switzerland will still be able to import these chips, but will be subject to a limited quota in the coming years.

&gt;__Switzerland’s dependence__

&gt;Experts are already expressing their concerns, as these chips are used extensively in academic research as well as by many companies.

&gt;These technologies are already present in many areas and will be omnipresent in the coming months to years, says Olga Baranova on RTS television in French-speaking Switzerland. She is Secretary General of the CH++ association, a citizens’ lobby to strengthen scientific and technological expertise in politics.

&gt;Baranova also points out that the USA largely dominates the market, which makes alternative supply difficult.

&gt;__Blocking rival countries__

&gt;It is not entirely clear why Switzerland is not one of the allied countries. The official US Department of Commerce document lists those countries they trust to protect their technology and have no restrictions. However, no individual statements were made regarding the excluded countries.

&gt;Nevertheless, it seems clear that the main aim of this regulation is to deny rival countries, especially China, access to this cutting-edge technology. The US is not only trying to curb exports, but also to prevent Chinese companies from circumventing the restrictions by setting up subsidiaries abroad.

&gt;Olga Baranova is therefore calling on the Swiss government to show the US that Switzerland meets the criteria to be considered a trustworthy partner. “It is clearly up to Switzerland to demonstrate its reliability and provide the US with additional guarantees.”

&gt;The State Secretariat for Economic Affairs (Seco) is currently analyzing the document and its potential impact on companies and research institutions. According to Seco, discussions have already begun with the US authorities to ensure that this regulation does not hinder research or innovation in Switzerland.

&gt;Seco also points out that Switzerland is home to US companies and their research centers that make heavy use of these chips, such as Google.

BezugssystemCH1903

From another article:

[Biden administration imposes restrictions on AI chip sales](https://thehill.com/policy/technology/5082501-biden-administration-restricts-ai-chips-sale/)

"Those that are not U.S. allies would be permitted to purchase up to 50,000 advanced graphics processing units (GPUs), although this number could be doubled through government-to-government arrangements. 

Individual entities would also be able to apply for a special status to purchase up to 320,000 advanced GPUs in order to facilitate the construction of data centers. 

Allied countries are exempt from the licensing requirements. These include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, the Republic of Korea, Spain, Sweden, Taiwan and the United Kingdom. 

Smaller shipments of up to 1,700 advanced GPUs would also not require licenses and would not count toward country’s chip caps. 

The rule was immediately slammed by the semiconductor and chips industry. Nvidia, a top producer of advanced GPUs, called the framework “unprecedented and misguided” and warned it could “derail innovation and economic growth worldwide.”

BlueInfinity2021

Time for Switzerland to become 100 % transparent about all US assets held by swiss banks.

FiveFingerDisco

So Switzerland can have the F35 but not those chips? Doesn't really make sense if it's about protecting the confidentiality of technology.

luekeler

The Swiss won’t allow their arms to be sent to Ukraine for their fight for survival, can’t be surprised when it happens to you

53x19

how will this bring down the price of eggs.

TheRobotFucker

Except they are not excluded, they will be limited in the numbers they can buy. Why does the headline differ from the article like that?

ForSaleMH370BlackBox

Hey Switzerland remember that time you’d wouldn’t allow Germany and other NATO states from donating ammunition they bought from you to Ukraine- pay back is a bitch.

IntrepidSoda

The thing is NVIDIA is the type of company that will ignore obvious circumvented sanctions.
They will only adhere to the letter of the law and not the spirit with which it was intended.

Death2RNGesus

Clearly a tactical choice to protect US companies. Switzerland is the defacto leader in robotics and biotech in the EU and AI represents a pivotal shift toward those industries expanding quickly. This is a trade war and a protectionist agenda. This is very strange times.

M83Spinnaker

So Switzerland will need to pay a little more for the chips to get around this…..Don’t think they care too much 

nelly2929

Will this really work? I mean, what is stopping Switzerland companies or universities from just going to France or Germany and buying their chips there?

bHVjcw

Damn, the government is worried about something in a very scary way… china must be catching up or almost there

westonriebe

Doesn't this just tempt Switzerland to go to China to get chips? like, this does more harm for the US than good.

Slayers_Picks

[deleted]

Knowing Swiss people, expect a swiss made chip, ETH is superb.

Thatredsofa

&gt;It is not entirely clear why Switzerland is not one of the allied countries.

Because Switzerland is famously neutral.  It's not officially a US ally and it's not in NATO.

Magggggneto

I like how US is  actively pushing other countries to do business with China.

foodisgod9

Meat-o-ball

What's next? Mexico's access to corn chips?

LeDestrier

Those damn Swiss with their mountains and toblerone bars.

BeardySam

They probably didn’t donate the orange emperor’s “inauguration fund”

NastyToeFungus

I imagine they see Switzerland’s neutrality as a loophole for those who are not allowed the chips to get their hands on them. The Swiss have notoriously always profited off of their neutrality

LegallyBrody

Fuck can America be more of the evil bad guy?

Technical-Note-9239

I'm telling ya, any enemies this new administration will make, the Chinese will step in and build a better relationship with.

Grimlock_1

So many reasons why buying the F-35 was a very bad idea...

Arduou

Switzerland does lot of shady stuff from enabling tax evasion to hiding criminal money nevermind the BS with the ammo for ukraine, so I think this is totally deserved, if somewhat surprising.

eternalityLP

They sure no more need any guarantees about neutrality

MaximilienGabriel

I booked 2 windows last time and it was pretty good

oceanraider1

To be fair, it says that the US only provides these freely to 18 trusted alliedd nations, including Japan. So that means that the US restricts exports to roughly half of NATO, and Switzerland is not singled out in any way.

lallen

What bill allowed this to happen? Just curious as I have not heard of this before.

lightedge

Jibberish_

Which are the 18 countries which are not restricted?

JohnBlutarski

Allerleriauh

radome9

Switzerland pivots to China..



fuck ya....fuck ya...

Money_Economy_7275

Yep this will only continue, America will take control and monopolize the AI boom because of it can do advance their weaponry and let’s be honest, undisputed military superiority. Thank god chinas economy crashed when they did because now they can not keep the US from taking control of this new situation which only increase the gap in military power. And being honest, America is much greater threat to the rest of the world than china is.

UOENO611

Oh shit, here we go again....
Switzerlands neutrality is militarily. We still have free trade.

Rectonic92

not_old_redditor

The Swiss no longer have access to spices and can no longer explore the galaxy.

latrickisfalone

Not to say that I'm particularly fond of the Swiss when it comes to politics, but they're pretty ok people and have done priceless research at CERN and with the LHC in particular.

Like, holy shit give them every GPU they need to expand their physics simulations!

g3etwqb-uh8yaw07k

Swiss here. I don‘t give a fuck, and Trump and his goons can go fuck themselves anyway.

Also, 90% of what‘s written on here about our handling of e.g. weapon exports to Ukraine is just false. I‘m not defending everything our government does, and there are many instances where I wish we were not as ‚neutral‘, but people love to simplify on here.

WildeRenate

These countries will ally with China eventually, which is unfortunate for the very antagonistic United States since China is already overtaking them in AI

I mean with the Swiss preventing German military equipment from being used in Ukraine because they made some of the bullets in their own country I can’t image what they would try and say we could or couldn’t do with their products. This seems like an earned position for the Swiss. 

Plus them straight up decommissions anti aircraft gear and destroying it instead of donation to a country that could use it. It just shows the side the Swiss are on

blu3str

Excellent move, the world is not ready for the horrors of AI yodeling, tobleroning, and cuckoo clocks

Trump just wants them to stick to making high-end, luxury watches. 

To be fair, it’s what they’re good at.

AntarcticAndroid

To be honest, it's a good thing, otherwise it wouldn't be too long until Wintermute is calling the shots.

Writingtechlife

If the deepseek thing hasn't been a tech wakeup call, a lot of that computing power probably isn't even needed as long as they approach the problem more intelligently other than brute forcing it.

Turkino

This is just the beginning, so as not to raise too many eyebrows and trigger emergency measures from countries also involved in chip technology (ASML, TSMC).
My guess is they plan to ban exports for everyone once they have secured the technology and built foundries on their own soil. Then, I would not be surprised to see foundries in Taiwan get the north stream treatment.

aleph02

greenbird333

Good. You can't trust Switzerland.
Greetings from a Swiss-German.

TiSoBr

Nvidia be like

![gif](giphy|printaSNrGdqU6NL6N)

GodSentPotHead

stonehearthed

At least Nvidia is a US based company, so this makes a bit more sense than the US gov threatening ASML (a dutch company) to block sales (to china) if they sell their latest models to China.

skumbagstacy

The price increases on 4090 is a clear sign the ban actually work as intended. China no longer can buy H100 or 4090 from Nvidia and have to smuggle 4090s from the American &amp; European consumer markets. Without the ability to build superpods it's much harder for the Chinese to keep up and continue developing large models. The gap is growing with the release of H200.

hamatehllama

I've seen a lot of people commenting on how China can't make these advanced chios themselves, any reason why?

Brucolo

China can still buy it from other countries. Especially ones that are part of BRICS.

So Jensen is making bath salts? Just reformulating the research chemicals?

Fatefire

First they raped the GPU market for crypto mining, now AI.

MDK1980

This is actually a pretty big deal for gamers.

The only path I see out of this is to kill ai performance on the redesigned cards, which could potentially mean Nvidia might release a 4090 GPU in terms of raster performance, but no DLSS. 

Or maybe I’m misreading this?

This is kinda of pointless. The Chinese will just buy them from third party sources

I support the government’s takeover of nvidia

Isa229

We get the RTX 4090s and China get the GTX 1660 Tis.

Philluminati

Obviously kinda sucks for Nvidia, but holy shit, talk about one hell of an advertisment.  


"GPUs so good even the government fears them".

XWasTheProblem

Couldn't third parties buy the cards then sell them to the Chinese at a premium? Or couldn't I buy one and send it to China?

![gif](giphy|3orifhPE5VHlqj81PO)

Not saying I'm gonna do that....but...hmmm...

HillanatorOfState

They are just trying to keep lobbies playable

Icy_Cheesecake_8240

\*Free market is only when its favorise myself \*

Good, becuase China is not a free market and has a communist government that would force corporations to do what they like... oh wait!

Jon-Slow

Black market bout to get crazy 



And also RGBified

KoppleForce

Nvidia moves headquarters overseas the very next day.
Checkmate.

joodontknowme

People don't see how this is bad for consumers. The US government will continue to push down on the product stack. China will continue to legally buy the lower tier GPUs. This will just jack the mid-range up. And that's not stopping them from illegally buy the 4090 either.

ecktt

Exaggerated marketing to sell the army technology that can change the outcome of a war.
The army believes in it and does not want that technology in enemy hands.
Pikachu surprised.

precario78

What exactly would China do (or anyone for that matter, US included) that would be seen as a major threat with AI? I’ve heard this rhetoric a lot yet not really seen it explained how AI is going to kill us all?

IKillZombies4Cash

I doubt this will do anything to the stock. The stock is down like the whole market today . Its actually holding up pretty good.

Shoddy_Union

How much of nvidia’s revenue do they think comes from smuggling to China?

BartD_

NVDA is up/down today because (insert any remotely relevant piece of news here, regardless of whether it’s complete BS or not).

Big_Location_855

People fail to understand that national security always overrides capitalism.  The US government will ban all exports (\~50%of revenue) if they think it is necessary.

That-Whereas3367

Futes are orange... You know what that means

flipflopdude55

How much is NVDA supposed to do police smuggling????? 

I mean, it's toooooooo onerous, it shouldn't be their problem.

klafwm

Latter_Wolf_9056

I dunno about this... right now there is  positive momentum to stocks like NVDA and AMD. After google, amazon, meta, apple all pretty much said they are increasing their AI capex to stay comptetive in the AI space... as opposed to reducing it like most analyst thought they would... 

I would be careful shorting semis, for at lease the next 2 weeks or so. 

But don't let me discourage you, your money, you.choose.

No-Contribution1070

kpeng2

Stop looking at it every second and taking advice from whoever- AI is in the 1st inning. NVDA is a buy and hold - period end of story.

Human_Zucchini_9223

saltytrader_

NVDA needs to close above and hold 115. If so the next level is 120. After that 140. It’s also up 30 points since it’s low in early April of 83.68. If the earnings report is a blow out and good guidance, you could have a nice short squeeze. But the stock is volatile so my suggestion is put a GTC + EXT order in and go to the beach.

Dow40

Holding very good all market its bad today

Business-Beginning80

To me, the news that smuggling of NViDIA GPUs is going on, means that there is great demand for the product. It is bullish.

EmbarrassedAd4310

TSLA-M3

qqhap101

It's not down. You seem to have massive anxiety about your position.   I'd recommend selling and buying VOO so you can sleep at night

GMVexst

Trimmed and then out! Too much geopolitical heat causing NVDA to go into another rollercoaster of uncertainties!

MusicIsVice1

thunder_crane

AlphaOne69420

AI is here and now, and also the future. Nvidia is the best, with no signs of slowing. As Warren Buffet said, trade shouldn’t be used as a weapon, so I’m going to continue holding bc ol’ Trumpy boy is going to get replaced. He’s pissed off his key supporters some, if he continues it will be over.

Bi_partisan_Hero

A new bipartisan bill, known as the Chip Security Act, aims to prevent AI chip smuggling to restricted countries, addressing national security concerns.

US Legislation to Prevent AI Chip Smuggling

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