Nvidia accuses Anthropic of fabricating claims in its support for U.S. AI chip export limits to China.

The tech industry is set to face a major showdown as Nvidia and Anthropic, a leading AI startup, clash over US chip export restrictions to China. The dispute centers on the proposed "AI Diffusion Rule," which is set to take effect on May 15 and aims to prevent rival nations like China from gaining an upper hand in the escalating AI arms race. Nvidia has accused Anthropic of fabricating claims in its support for the stricter export controls. In a rare public statement, the company's spokesperson lashed out at Anthropic's claims, saying that American firms should focus on innovation rather than making "tall tales" about the smuggling of chips. Nvidia specifically took issue with Anthropic's assertion that Chinese smugglers have used creative methods to evade detection, such as hiding chips in "prosthetic baby bumps" and "packing them alongside live lobsters." In response, Anthropic has stood by its claims, citing real-life examples of chip smuggling attempts, including the 2022 arrest of a woman carrying chips into China and the 2023 seizure of "computer display cards" with a lobster shipment in Hong Kong. The company has also proposed stricter export controls, including lowering the threshold for Tier 2 countries and increasing funding for enforcement. The dispute has significant implications for the tech industry, as it could limit Nvidia's overseas business and revenue from chip sales. Anthropic, which relies heavily on Nvidia hardware to train its models, is calling for tighter restrictions that could benefit its own business. The controversy comes as US President Donald Trump is reportedly working on updating the export restrictions, adding another layer of uncertainty to the already contentious policy. The issue is likely to have far-reaching consequences for the global tech industry and the development of artificial intelligence.