A recent decision by US AI company Anthropic to defend disputed chip export rules is continuing to reverberate throughout the technology world, and part of the support for its decision comes from an unusual area.
Anthropic's stance has put it at odds with other American technology heavyweights such as Microsoft and Nvidia, which have worked in recent months to convince the Trump administration to completely overhaul chip export policies that seek to maintain the US lead in AI by making it more difficult for other countries, mainly China, to obtain powerful chips.
"In some cases, smugglers have employed creative methods to circumvent export controls, including hiding processors in prosthetic baby bumps and packing GPUs [graphics processing units] alongside live lobsters," read a policy letter by Anthropic.
In the footnotes of Anthropic's letter, it sources the prosthetic baby bump and lobster chip-smuggling story to WCCF Tech, a technology news forum established in 2004.
"While at the port, the Chinese customs authorities noticed something was off about the woman and asked her for inspection," reads the story posted in 2022.
"After having the fake belly removed, the customs authorities found a total of 202 Intel CPUs and 9 mobile phones within the fake prosthetic."
Anthopic sourced a 2023 story in PC Mag in which Hong Kong authorities reportedly stopped people who were trying to smuggle 70 graphics cards in a cargo box containing live lobsters.
That portion of its letter to the White House irked AI-chip powerhouse Nvidia, with a representative of the company accusing Anthropic of lying.
"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," a statement from the Nvidia representative said.
Both instances cited by Anthropic are somewhat dated and nowhere near powerful enough to be accurately compared the highly sought after CPUs and GPUs often required for AI purposes.
For instance, Nvidia's much touted Blackwell system is approximately the size of a car, and therefore not exactly easy to smuggle.
All that said, on May 15, the chip export policies drafted under former president Joe Biden's administration will go into effect.
Under the proposed rules, countries would be split into tiers that would determine how many powerful chips and GPUs they could buy.
Falling into the first tier and largely unaffected by the rules are Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan and the UK.
Other countries, such as Switzerland, Poland, Greece, Singapore, India, Indonesia, Israel, the UAE and Saudi Arabia, would fall into a second-tier category, making it more difficult – although not impossible – to obtain the chips needed for AI research and development.
The third tier of countries – China, Iran, North Korea, Russia, Syria and Venezuela – will have the most difficulty obtaining GPUs and CPUs under the new rules, if they are applied.
Early in 2025, US technology and AI giants such as Microsoft and Nvidia came out strongly against the diffusion rules, saying that they would backfire, and limit US tech influence in the world.
Meanwhile, some countries seem to making progress in trying to buy chips for non-frontier AI uses without burdens or limits.
According to a source, US President Donald Trump's administration is considering exempting the UAE from most of the policies through a deal involving Nvidia.
Those options could include giving Nvidia the ability to sell chips to the UAE without restrictions, although other ideas are also being discussed.
The development comes as Mr Trump prepares for his visit to the UAE.
Other governments are still in wait-and-see mode.
"We have substantive concerns with it," said a source representing a country falling into the second tier of the proposed chip export rules.
The source said that the limited ability to acquire AI semiconductors and GPUs could severely affect the country's desire to build more data centres.
"We’re one of the largest hubs for data centres and they had no idea about that," the source said, referring to concerns raised with the White House when the AI diffusion rules were announced towards the end of the Biden administration.
Although Anthropic's stance of mostly supporting the rules stands out in the technology community, there is nuance in its letter to the Trump administration.
The technology company, largely viewed as a competitor to OpenAI, said that the chip export tier system should be tweaked.
"We suggest allowing countries in Tier 2 with robust data centre security to obtain more chips through government-to-government agreements that prevent smuggling and align technology controls," Anthropic wrote, without naming countries or defining "robust" data centre security.
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
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- Mental well-being assistance
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
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1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
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September 3: Qatar becomes independent.
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November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.
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