US imposes new restrictions on Nvidia’s top AI chip exports to China
US imposes new restrictions on Nvidia’s top AI chip exports to China

US imposes new restrictions on Nvidia’s top AI chip exports to China

 

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Nvidia said in a filing to the SEC that the US government told the company on Aug. 26, about a new license requirement for future exports to China, including Hong Kong, to reduce the risk that the products may be used by the Chinese military.

The restriction would affect the A100 and H100 products, which are graphics processing units sold to businesses, it said. “The license requirement also includes any future Nvidia integrated circuit achieving both peak performance and chip-to-chip I/O performance equal to or greater than thresholds that are roughly equivalent to the A100, as well as any system that includes those circuits.”

The company expects that it could lose $400 million in potential sales in China in the current quarter after previously forecasting revenue of $5.9 billion. The new rule also applies to sales to Russia, but Nvidia said it doesn’t have paying customers there.

Nvidia said it was applying for a license to continue some Chinese exports but doesn’t know whether the U.S. government will grant an exemption. “We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren’t sufficient,” an Nvidia spokesperson told CNBC. “The only current products that the new licensing requirement applies to are A100, H100 and systems such as DGX that include them.”