On May 1, 2025, Nvidia publicly disagreed with Anthropic’s support for the U.S. Department of Commerce’s “Framework for Artificial Intelligence Diffusion.”
This policy will impose strict export controls on AI chips starting May 15.
Nvidia challenged Anthropic’s concerns over AI chips being smuggled into China, disputing their claims.
The dispute highlights tensions between AI companies regarding U.S. export regulations.
Background and Parties Involved
The parties involved include Nvidia Corporation, a leading American AI hardware and software company, and Anthropic, an AI safety research organization. The U.S. Department of Commerce proposed the export restrictions for national security reasons.
Anthropic supports the restrictions due to concerns about unauthorized smuggling of AI chips into restricted countries like China. Nvidia countered by stating the smuggling methods Anthropic described were exaggerated. A spokesperson for Nvidia told CNBC that American firms should focus on innovation instead of unverified smuggling stories.
Significance
This disagreement is important because Nvidia warned these export controls could cause a significant loss in revenue.
The company expects a $5.5 billion revenue loss in the first quarter of its 2026 fiscal year due to licensing requirements for its H20 AI chips in China. Nvidia holds over 90% of the global AI computing chip market and more than 98% in the AI training chip sector.
| Statistic | Value | Source |
|---|---|---|
| Anticipated Revenue Loss (Q1 FY2026) | $5.5 billion | reuters.com |
| Global AI Computing Chip Market Share | >90% | asianfin.com |
| AI Training Chip Market Share | >98% | asianfin.com |
Impact
The debate exposes a conflict between U.S. national security efforts and the commercial interests of AI companies. Nvidia fears export limits could lead to a “permanent loss of opportunities” in key markets such as China.
Anthropic’s stance is based on reports of AI chips being smuggled, but Nvidia disputes this narrative, emphasizing innovation focus. Nvidia’s concerns were detailed soon after the new licensing requirement was imposed.
This controversy reflects broader challenges for U.S. AI technology firms balancing global business and national policies.
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