AI component sparks US-China rivalry

The United States is considering banning the import of Chinese optical transmitters and receivers used in data centers, as part of efforts to reduce the risks of data theft and disrupt AI services. This ban could lead to a potential supply shortage, especially since Chinese companies like InnoLight and Eoptolink control about two-thirds of the global market, which may result in higher costs for American companies and delays in their schedules. This move is part of a broader strategy to limit Chinese technological influence, with increased restrictions on equipment related to national security infrastructure.

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