China’s AI companies are reportedly rationing the use of their services because they don’t have enough chips

Chinese tech firms are rationing the use of their AI services because a lack of computing power, caused from a shortage of chips, reports The Information. — Getty Images/The New York Times

China's chip industry may have found a way to make an advanced chip that can power a 5G smartphone, but it can't yet make a chip powerful to run AI applications. And that dependence on chip imports, restricted by a US ban, could now be putting China's tech sector at a disadvantage in the race to dominate AI.

Chinese tech firms are rationing the use of their AI services because a lack of computing power, caused from a shortage of chips, reports The Information.