US export embargo drives up prices of Nvidia’s latest GPUs in China

The export ban imposed by the United States on Nvidia’s latest Graphics Processing Units (GPUs) in China has resulted in a significant surge in the prices of the GPU in the country.

This has caused a major disruption in the market, leading to a shortage of these high-end GPUs.

The ban has had a profound impact on the Chinese tech industry, as many companies rely heavily on these GPUs for their operations. As a result, the demand for these GPUs has skyrocketed, leading to a significant increase in their prices.

Nvidia’s second-generation A100 GPUs, which are now subject to export rules that prevent them from being sold in China, can fetch up to $20,000 in black markets – more than double the regular price.

The Department of Commerce barred leading US hardware companies, including Nvidia and AMD, from selling their most advanced chips to China and Russia last year in an effort to undermine the countries’ technological superiority. Nvidia was forbidden from exporting its A100 and H100 GPUs under the new laws.

Reports reveal that developers in China could still procure small batches of A100s – by importing them from other Asian countries like India, Taiwan or Singapore, in black markets, and even in some electronics stores.

A single GPU can reportedly go for $20,000 in Shenzhen.

Buying or selling these types of chips isn’t illegal within China, but is frowned upon. They are difficult to find in large quantities, since US companies are not allowed to export them directly, making it more difficult for Chinese developers to train large, powerful models.

The Federal Election Committee is split on whether to outlaw political advertisements made with generative AI tools. The FEC was urged in a petition to clarify if possibly misleading AI-created advertising are considered “fraudulent misrepresentation of campaign authority.” Half of the six-member committee voted to grant the petitioner’s request, while the other half voted against taking action.

Concerns exist that AI-generated material could undermine democracy by disseminating misinformation to influence people’s opinions about political candidates.

The Republican Party recently released a false anti-Joe Biden ad developed with AI, while another for Ron DeSantis’ campaign targeted his biggest opponent, Donald Trump.