New US Chip Sanctions 'Kneecap' China's Tech Industry

Last month, the Chinese ecommerce giant Alibaba revealed a powerful new cloud computing system designed for artificial intelligence projects. It is used by Alibaba's cloud customers to train algorithms for tasks like chatbot dialogue and video analysis, and was built using hundreds of chips from US companies Intel and Nvidia. Last week, the US announced new export restrictions that will make future projects like that unlikely. The Biden administration's rules forbid companies from exporting advanced chips needed to train or run the most powerful AI algorithms to China. The sweeping new controls are designed to keep the country's AI industry stuck in the dark ages while the US and other Western countries advance.