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The U.S. Department of Commerce has relaxed restrictions on exporting advanced AI chips to China, allowing the sale of Nvidia H200 and AMD MI325X chips, which were previously banned due to national security concerns.

This regulation could potentially increase China's AI capabilities significantly, despite limitations on exports and challenges in preventing military access to the technology. Following the announcement, stocks for Nvidia and Micron Technology fell over 1%, reflecting apprehensions about the implications of these new export rules.