'Stop the Tall Tales': Nvidia Blasts Anthropic Over China Export Rules

Anthropic wants to slam the door on China's AI chip access. Nvidia thinks that's nuts.

The AI startup's new policy paper reads like a spy thriller. It warns of Chinese smugglers stuffing processors into fake pregnancy bellies and hiding chips among live lobsters. Nvidia's response? Stop telling "tall tales" and compete.

But beneath the theatrical accusations lies a serious debate. Anthropic claims America's computing edge will vanish without stricter controls. They want to lower purchase limits and tighten screening - moves that would squeeze Nvidia's overseas sales.

Smugglers Get Creative, Companies Get Angry

Trump's team plans to update Biden's export rules before they kick in May 15. Meanwhile, Chinese firms rush to stockpile chips like squirrels before winter.

Anthropic argues the math is simple: computing power doubles every two years. Block China's access to cutting-edge chips, and by 2027, their AI training could cost 10 times more than U.S. efforts.

Nvidia Fires Back

Not everyone buys this logic. Nvidia points to China's deep AI talent pool, suggesting no amount of trade barriers will hold them back. "America cannot manipulate regulators to capture victory in AI," they declared.

The debate exposes a deeper divide in Silicon Valley. Should America protect its lead through innovation or regulation? The answer could reshape the future of AI.

America's Chip Crisis By the Numbers

The numbers paint a stark picture. America's share of global chip production has plunged from 40% in 1990 to a measly 12% today. A whopping 90% of cutting-edge semiconductors now come from overseas.

Anthropic sees this as a wake-up call. They want to force the next wave of AI infrastructure to stay on American soil. Their solution? Make access to advanced chips depend on playing by U.S. rules.

Critics call this technological protectionism. But Anthropic insists the alternative looks worse: watching America's AI advantage slip away like its manufacturing base did decades ago.

Why this matters:

• The AI world is splitting into armed camps: Those who want to share the toys and those who want to lock them away
• Silicon Valley's philosophical clash reveals an uncomfortable truth: When billions are at stake, tech companies fight as fiercely as the nations they serve

Read on, my dear:

• Anthropic: Anthropic's AI Export Controls Framework Response
• CNBC: Nvidia says Anthropic is telling ‘tall tales’ in its defense of U.S. AI chip restrictions on China