U.S. chip export ban is ‘great news,’ says partner at Chinese tech investment fund

Published

2 years ago

October 23, 2023

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U.S. chip export ban is 'great news,' says Chinese tech investor

A partner at a Chinese semiconductor investment fund has welcomed the U.S. government’s ban of certain advanced chip types to be exported to China, describing the move as “great news” which may stimulate a domestic ecosystem.

Chloe Wang, a partner and vice-president at the Guangzhou-headquartered Yang Cheng Fund, said: “We received the very great news this morning, and I didn’t feel surprised about the U.S. [which] continued to ban the H100 and 800 exports to China,” Wang told CNBC’s East Tech West conference in the Nansha district of Guangzhou, China, on Wednesday.

The U.S. Department of Commerce is set to prevent the sale of some advanced artificial intelligence (AI) chips to China, it announced on Tuesday, over concerns they could be used for military development purposes. This will restrict the export of chipmaker Nvidia‘s A800 and H800 chips, officials said.

Nvidia’s H100 chip, used by AI firms in the U.S., was banned for sale in earlier U.S. government restrictions.

Wang said the fund invests in semiconductor companies, including those in the AI training and autonomous vehicle sectors. One AI chip company Yang Cheng has invested in will launch its initial public offering this year, while a Shanghai-based AI chip firm is valued at more than $3 billion, Wang added, though she didn’t name the firms.

“We believe those kind of upstream chipmakers — they will drive, or they will play the leading role in China, and they will create their own ecosystem,” Wang added. “And maybe we can, not too much rely on the Cuda system,” she said, referencing Nvidia’s AI software.

“I still feel quite confident about the Chinese entrepreneurs as well as the consumer base market,” she added.

A worker holds a circuit board.

Owngarden | Moment | Getty Images

Wang said there are around 1,500 companies in China that are involved in the design of integrated circuits (IC) and a “shortage” of companies in the AI chip training sector, with around 20 start-ups in the space.

China wants to increase its computing power by 50% by 2025, according to a plan by several Chinese ministries announced in October. Doing so is seen as a key way of developing AI, which needs advanced semiconductors to process vast amounts of data.

The U.S. government ban is designed to prevent China’s access to advanced semiconductors “because they could be used for military uses and modernization,” U.S. Commerce Secretary Gina Raimondo said on a call with reporters Tuesday. They’re not intended to hurt Chinese economic growth, U.S. officials added.

In recent months attention has turned back onto Chinese tech giant Huawei. Its latest smartphone, the Mate 60 Pro, has a chip that appears to support 5G, despite U.S. sanctions that have sought to cut the company off from the technology.

The chip, made by China’s SMIC, has sparked concern in Washington and raised questions about how it was possible. There’s also scrutiny on whether the process being used to make these new chips is efficient enough on a large scale to sustain a Huawei comeback.

CNBC’s Kif Leswing and Arjun Kharpal contributed to this report.

Technology

Figure AI sued by whistleblower who warned that startup’s robots could ‘fracture a human skull’

Published

15 hours ago

November 21, 2025

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$Figure AI sued by whistleblower who warned that startup's robots could 'fracture a human skull'$

Startup Figure AI is developing general-purpose humanoid robots.

Figure AI

Figure AI, an Nvidia-backed developer of humanoid robots, was sued by the startup’s former head of product safety who alleged that he was wrongfully terminated after warning top executives that the company’s robots “were powerful enough to fracture a human skull.”

Robert Gruendel, a principal robotic safety engineer, is the plaintiff in the suit filed Friday in a federal court in the Northern District of California. Gruendel’s attorneys describe their client as a whistleblower who was fired in September, days after lodging his “most direct and documented safety complaints.”

The suit lands two months after Figure was valued at $39 billion in a funding round led by Parkway Venture Capital. That’s a 15-fold increase in valuation from early 2024, when the company raised a round from investors including Jeff Bezos, Nvidia, and Microsoft.

In the complaint, Gruendel’s lawyers say the plaintiff warned Figure CEO Brett Adcock and Kyle Edelberg, chief engineer, about the robot’s lethal capabilities, and said one “had already carved a ¼-inch gash into a steel refrigerator door during a malfunction.”

The complaint also says Gruendel warned company leaders not to “downgrade” a “safety road map” that he had been asked to present to two prospective investors who ended up funding the company.

Gruendel worried that a “product safety plan which contributed to their decision to invest” had been “gutted” the same month Figure closed the investment round, a move that “could be interpreted as fraudulent,” the suit says.

The plaintiff’s concerns were “treated as obstacles, not obligations,” and the company cited a “vague ‘change in business direction’ as the pretext” for his termination, according to the suit.

Gruendel is seeking economic, compensatory and punitive damages and demanding a jury trial.

Figure didn’t immediately respond to a request for comment. Nor did attorneys for Gruendel.

The humanoid robot market remains nascent today, with companies like Tesla and Boston Dynamics pursuing futuristic offerings, alongside Figure, while China’s Unitree Robotics is preparing for an IPO. Morgan Stanley said in a report in May that adoption is “likely to accelerate in the 2030s” and could top $5 trillion by 2050.

Read the filing here: