U.S. Limits Chinese AI Investment

This is a US news story, published by Wired, that relates primarily to US Treasury Department news.

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Why the US Government Banned Investments in Some Chinese AI Startups

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US Treasury Department finalized new restrictions limiting what kinds of Chinese tech startups US venture capital firms can invest in for national security reasons.

When they go into effect in January , the long-awaited measures will stop American VCs and other investors from pouring money into cutting-edge Chinese AI models.

The new restrictions outline two broad no-go zones for US AI investors: companies developing tech designed exclusively for sensitive uses like China ’s military and intelligence services.

The Treasury Department is not setting up a new government committee like CFIUS that will review every transaction investors submit.

The more certain short-term impact is that US investors who are still interested in Chinese AI startups will have to do a whole lot more due diligence.

Even if a Chinese startup’s AI model is smaller than the 1025 -flops size threshold, a US investor might still have to notify the Treasury Department .

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