Nvidia criticises Google and Amazon-backed AI startup for ‘Chinese smuggling tactics’ claim: ‘American firms should focus on…’

Nvidia has slammed Anthropic for its claims that Chinese smugglers are using ‘bizarre’ methods to sneak advanced chips past export controls. This includes hiding them in “prosthetic baby bumps” and “alongside live lobsters.” The clash comes as the US chip export restrictions, introduced under the previous Biden administration and known as the "AI Diffusion Rule," are set to take effect on May 15. The rule aims to curb the transfer of cutting-edge AI chips and model weights to countries like China amid rising global AI tensions. In a recent blog post, the AI startup backed by Google and Amazon has urged stricter enforcement of the rules, which prompted Nvidia to push back, warning that American companies should avoid “fear-mongering” and focus on innovation. Meanwhile, US President Donald Trump is also reportedly considering updates to the restrictions.

In a statement to CNBC, a Nvidia spokesperson said: “American firms should focus on innovation and rise to the challenge, rather than tell tall tales that large, heavy, and sensitive electronics are somehow smuggled in ‘baby bumps’ or ‘alongside live lobsters.’ China, with half of the world’s AI researchers, has highly capable AI experts at every layer of the AI stack. America cannot manipulate regulators to capture victory in AI.”
This statement comes after Anthropic, which depends significantly on Nvidia hardware to train its AI models, called for stricter export controls that could impact Nvidia’s international business and chip sales revenue.
The company argued that access to computing power is the key strategic chokepoint in the global race to develop advanced AI. To address this, Anthropic proposed lowering the export threshold for Tier 2 countries, tightening regulations to curb smuggling, and boosting enforcement funding.
“Maintaining America’s compute advantage through export controls is essential for national security and economic prosperity,” Anthropic wrote in a blog post.

Last month, when Nvidia CEO Jensen Huang met with Chinese trade officials in Washington DC, he said that China is “not behind” the US in AI and praised Huawei as a top global tech company.
“They’re incredible in computing and network technology, all these essential capabilities to advance AI. They have made enormous progress in the last several years,” Huang said.