(Image credit: Getty Images) Nvidia and Anthropic have publicly locked horns over the impending enforcement of the U.S. government's new AI Diffusion Rules. According to a CNBC report, an Nvidia spokesperson has described Anthropic's assertions that the Chinese sometimes go to extraordinary lengths to smuggle Nvidia chips as "tall tales." More specifically, a spokesperson for Nvidia told CNBC that, “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.’” In other words, the Green Team has poured scorn on the notion that the Chinese would smuggle CPUs in baby bumps or smuggle GPUs alongside live lobsters. While Nvidia's stance might have merit if we consider the scale of these bizarre smuggling operations, it is technically wrong, as Chinese Customs has documented these exact occurrences. Check out the above links for more details on those particularly peculiar cases. Furthermore, what we see is probably just the tip of the iceberg. And that's to say nothing of suspect GPU sales in Singapore and Malaysia, with the former reportedly under investigation by the U.S. government. This situation seems to have come to a head as the new AI Diffusion Rules, designed to prevent hostile nations like China from gaining advanced AI technologies from the West, are set to come into force starting on May 15. The Biden administration formulated these rules toward the end of his term (they were published in January). In one corner, Nvidia is keen to continue supplying as many high-end GPUs to China as the country can absorb, and it is allowed to supply. Meanwhile, Amazon-backed and U.S.-based AI firm Anthropic naturally wishes for a ready supply of AI accelerators stateside, with fewer competitors to push pricing up. It reportedly has plans for bigger and better data centers to propel its fortunes. Moreover, it pleads the case for keeping transformative AI technologies in the U.S. "in alignment with American values and interests." Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.Stay On the Cutting Edge: Get the Tom's Hardware NewsletterGet Tom's Hardware's best news and in-depth reviews, straight to your inbox. See more GPUs News