The US is taking a cut from chip sales to China - what does it mean?

These advanced chips are largely used for artificial intelligence (AI) applications at a time when investors are betting that AI will transform the global economy. Last month, Nvidia - which is the world's leading chip maker - became the first company ever to hit 4tn ( 3tn) in market value. Nvidia developed the H20 chip, and AMD developed the MI308 chip, especially for the Chinese market. They are less powerful and therefore cheaper than both companies' flagship chips. But developing them was the only option for accessing the significant Chinese market after the previous administration of President Joe Biden banned US companies from exporting the most advanced chips to China because of national security concerns.