Caroline Hyde

The company has argued that, look, we don't need these restrictions in place.

The Commerce Department already has the authority to do so.

And there is no competition between customers in China and the customers here in the U.S.

The bill also would have required the company to give first dibs to American buyers,

It looks like lawmakers are going to exclude this provision from must pass defense legislation that has to be done before the end of the year.

However, we can't consider it completely dead.

Our sense is that Congress may try again.

There is bipartisan support for this idea.

And we do get a sense that some lawmakers still have concerns about allowing China to have access to some of those advanced AI chips from NVIDIA.

Yeah, this is exactly what Jensen Wang is talking about.

This is exactly what he's concerned about within China, that after the Biden administration first decided to cut off shipments of Nvidia chips into that country, the government and the companies there saw the market opportunity, they saw their own vulnerabilities, and they decided to invest very, very aggressively

in their own production technologies for chips and also AI design.

So Huawei is really the primary competitor that we have been talking about.

They have quite a bit of momentum in building these AI chips.

They've been used in a number of different places there.

CameraCon is really the second player.

It's sort of like the AMD for that market.

They're quite small at this point.

They don't have the kind of heft that

uh huawei does in particular but they are making a lot of progress so what our sources have told us is that their plans are to triple their production of ai chips into next year there'll be a a pretty significant second to huawei in supplying those chips so to the broader question about what u.s export controls do to this market as as jensen wong is talking about it certainly has opened it up for domestic production chinese companies are being told by beijing that they should buy domestic chips whenever possible