C3.ai (A.I. 6.13%) He benefited from some good news on the government front on Tuesday. The company’s shares soared more than 6% on the Biden administration’s latest attempt to tighten restrictions on exports of advanced computer chips from the United States to China. This compares favorably with a small decrease. S&P500 Index of the day.
Biden cuts chip supplies to China
The president plans to completely halt exports to the vast Asian country, fearing that such chips could be used for artificial intelligence (AI) capabilities used by the country’s military.
The ban expands on a series of current restrictions restricting shipments of these products to China and will go into effect within 30 days. It covers a broader range of next-generation chips and the products that make them.Major chip makers are likely to be among those affected. Nvidia (NVDA -4.68%)among others.
Commerce Secretary Gina Lamond said the regulations will likely be amended as needed, perhaps once a year.
In a statement quoted by Reuters, an anonymous spokesperson for the Chinese embassy said the country’s government was “firmly opposed” to the latest restrictions imposed by its U.S. counterpart.
Domestic AI developers take a break
Without meaningful competition from large and ambitious Chinese developers, C3.ai and other AI companies are unlikely to succeed. Although the AI sector is still in its infancy, it has already become a hot technology among investors, as well as companies looking to automate certain products and ordinary people looking for assistance with various tasks. .
Eric Volkman has no position in any stocks mentioned. The Motley Fool has a position in and recommends Nvidia. The Motley Fool recommends his C3.ai. The Motley Fool has a disclosure policy.