US Lawmakers Angry After Huawei Unveils Laptop With New Intel AI Chip

In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)
In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)
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US Lawmakers Angry After Huawei Unveils Laptop With New Intel AI Chip

In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)
In this Oct. 14, 2020, file photo, a man wearing a face mask to protect against the coronavirus walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing. (AP Photo/Mark Schiefelbein, File)

Republican US lawmakers on Friday criticized the Biden administration after sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel AI chip.

The United States placed Huawei on a trade restriction list in 2019 for violating Iran sanctions, part of a broader effort to hobble Beijing's technological advances. Placement on the list means the company's suppliers have to seek a special, difficult-to-obtain license before shipping to it, Reuters reported.

One such license, issued by the Trump administration, has allowed Intel to ship central processors to Huawei for use in laptops since 2020. China hardliners had urged the Biden administration to revoke that license, but many grudgingly accepted that it would expire later this year and not be renewed.

Huawei's unveiling Thursday of its first AI-enabled laptop, the MateBook X Pro powered by Intel's new Core Ultra 9 processor, shocked and angered them, because it suggested to them that the Commerce Department had approved shipments of the new chip to Huawei.

“One of the greatest mysteries in Washington, DC is why the Department of Commerce continues to allow US technology to be shipped to Huawei" Republican Congressman Michael Gallagher, who chairs the House of Representatives select committee on China, said in a statement to Reuters.

A source familiar with the matter said the chips were shipped under a preexisting license. They are not covered by recent broad-cased restrictions on AI chip shipments to China, the source and another person said.

The Commerce Department and Intel declined to comment. Huawei did not immediately respond to requests for comment.

The reaction is a sign of growing pressure on the Biden administration to do more to thwart Huawei's rise, nearly five years after it was added to a trade restriction list.

In August, it shocked the world with a new phone powered by a sophisticated chip manufactured by sanctioned Chinese chipmaker SMIC, becoming a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.

At a Senate subcommittee hearing this week, Kevin Kurland, an export enforcement official, said Washington's restrictions on Huawei have had a "significant impact" on it access to US technology. He also stressed that the goal was not necessarily to stop Huawei from growing but to keep it from misusing US technology for "malign activities."

But the remarks did little to stem frustration among Republican China hawks following the news about Huawei's new laptop.

"These approvals must stop," Republican congressman Michael McCaul said in a statement to Reuters. "Two years ago, I was told licenses to Huawei would stop. Today, it doesn’t seem as though the policy has changed."



AI Cloud Provider SMC Plans Global Rollout

People attend a media tour of Sustainable Metal Cloud's Sustainable AI Factory in Singapore July 25, 2024. REUTERS/Caroline Chia/File Photo Purchase Licensing Rights
People attend a media tour of Sustainable Metal Cloud's Sustainable AI Factory in Singapore July 25, 2024. REUTERS/Caroline Chia/File Photo Purchase Licensing Rights
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AI Cloud Provider SMC Plans Global Rollout

People attend a media tour of Sustainable Metal Cloud's Sustainable AI Factory in Singapore July 25, 2024. REUTERS/Caroline Chia/File Photo Purchase Licensing Rights
People attend a media tour of Sustainable Metal Cloud's Sustainable AI Factory in Singapore July 25, 2024. REUTERS/Caroline Chia/File Photo Purchase Licensing Rights

Singapore-headquartered AI cloud provider Sustainable Metal Cloud (SMC) is planning to expand globally as its sees fast-growing demand for its energy saving technology, its CEO said on Thursday.

"Due to client demand, we’re looking to expand in EMEA (Europe Middle East and Africa) and North America," CEO and co-founder Tim Rosenfield said, Reuters reported.

The startup, a partner of AI chip giant Nvidia, already operates what it calls "sustainable AI factories" in Australia and Singapore and is set to launch in India and Thailand.

Its clients in Singapore, where it operates over 1,200 of Nvidia's high-end H100 AI chips, include Facebook owner Meta who uses SMC's cloud to run its Llama 2 AI model.

While most data centres depend on air cooling technology, SMC uses immersion technology, submerging servers from Dell fitted with GPUs (graphics processing units) from Nvidia in a synthetic oil called polyalphaolefin to draw heat away faster.

The technology behind the approach reduces energy consumption by up to 50% compared to traditional air cooling, according to the CEO.

Demand for AI is expected to increase 10-fold compared with 2023, according to the International Energy Agency (IEA).

The electricity consumption of data centres globally is expected to top 1,000 terawatt-hours in 2026, roughly equivalent to Japan's total annual consumption, the IEA said in March.

SMC is currently raising $400 million in equity and $550 million in debt according to a source with direct knowledge of the matter.

The company declined to comment. The fundraising was first reported by Bloomberg.