00:00A report just came out today revealing that U.S. chipmaker NVIDIA helped China
00:05deep seek advanced AI models used by China's military. Olivia, how does
00:10this affect U.S. security concerns about selling chips to China?
00:14I think it's certainly some...
00:15...the existing U.S. security concerns about chip exports to China.
00:20This is not the first time that Congressman Moolenar has written to Commerce Secretary Lutnik about...
00:25...those concerns. Effectively, he is saying that irrespective of how you...
00:30...try to control the licensing at the point of export, it's incredibly difficult...
00:35...to control how the chips will actually be used downstream.
00:39You basically...
00:40...lose the line of sight to what's happening with those chimps...
00:43...once they exit your borders.
00:45But honing in on this now...
00:47...at a time when the first batch of 8200...
00:50...have been cleared for export to China, I think the timing is also pretty...
00:55...significant.
00:56The U.S. lawmaker's letter calls for tougher limits to stop U.S. technology...
01:00...from reaching Chinese companies.
01:02What would stricter enforcement look like and what response...
01:05...disability do companies like NVIDIA have once its technology leaves its hands?
01:10I understand that NVIDIA is investing in location verification technology.
01:15...to counteract the risk of chips being smuggled into locations where they were...
01:20...not originally exported to.
01:22There is also something that...
01:25...congressmen...
01:26...that the congressman has actually raised previously...
01:29...which is to...
01:30...to change the way that export controls are pegged.
01:34So currently...
01:35...U.S. export controls very much see U.S. capabilities as the baseline.
01:40So it's okay to export chips that are below the level of U.S. capabilities.
01:45But what Molinari suggested previously is you should actually shift that lower.
01:50Set the threshold lower so that China can only receive chips that are...
01:55...slightly above their current domestic capabilities.
01:58Now NVIDIA has responded saying...
02:00...China's military does not depend on U.S. technology...
02:03...and that China has enough of its...
02:05...own chips for all its military applications.
02:08Is NVIDIA's response convincing?
02:10I think NVIDIA's assessment is absolutely true.
02:13The Chinese do not want to...
02:15...to be reliant on U.S.
02:17U.S. made or U.S. exported chips.
02:19That being said...
02:20...I think the argument is absolutely also very convenient from NVIDIA's point of view.
02:25NVIDIA is a company that absolutely still wants to stay in the Chinese market.
02:29They're currently...
02:30...very successfully walking this tightrope of convincing the U.S. administration...
02:35...so that they can manage and mitigate national security concerns...
02:39...while driving...
02:40...profits and revenues that are good for U.S. consumers and for U.S. business.
02:45...and at the same time obviously for NVIDIA's share price as well.
02:50I think there'll be something in that real-time...
02:51...in next step.
02:53All right...
02:54...at the way we promise можно...
02:55...we promise that we can...
02:56...another valle...
02:58...and some as the U.S. ded langsam connected...
02:59...and...
03:00...missив as a ladder...
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