US government: NVIDIA and AMD have been ordered to stop selling AI Chip to China
- 2 years ago
Two of America's leading chipmakers have been ordered to stop selling artificial intelligence-related technology to China.
Nvidia and AMD announced on Wednesday that the US government has directed them to cease exports of certain high-performance chips to China.
Nvidia stated in a regulatory filing that it was informed by US officials that the requirement was due to a potential risk of the items being used by or diverted to a "military end user."
The restrictions cover Nvidia's A100 and forthcoming H100 integrated circuits, and any systems that include them, effective immediately, it said.
The move threatens to upend $400 million worth of business for Nvidia, according to the filing.
That's roughly what the California-based tech giant projected last week in potential sales to China, which could be affected by the new requirement, it said in the filing.
Nvidia shares tumbled 6.6% in after-hours trading Wednesday, while AMD stock was down 3.7%.
"At this time, we do not believe that shipments of MI100 integrated circuits are impacted by the new requirements," it said, referring to another line of components. "We do not currently believe it is a material impact on our business."
The new rules are a reminder of how US-China tensions remain high over business and tech.
Last week, a rare agreement between the two countries on auditing US-listed Chinese companies had suggested a breakthrough in relations, but experts have warned the deal will do little to resolve other key issues.
The new mandate for chipmakers also covers a ban in exports to Russia, Nvidia and AMD noted.
Both companies said they do not currently sell any products to Russia.
Source:
https://edition.cnn.com/2022/09/01/tech/us-nvidia-amd-chips-china-sales-block-intl-hnk/index.html
Nvidia and AMD announced on Wednesday that the US government has directed them to cease exports of certain high-performance chips to China.
Nvidia stated in a regulatory filing that it was informed by US officials that the requirement was due to a potential risk of the items being used by or diverted to a "military end user."
The restrictions cover Nvidia's A100 and forthcoming H100 integrated circuits, and any systems that include them, effective immediately, it said.
The move threatens to upend $400 million worth of business for Nvidia, according to the filing.
That's roughly what the California-based tech giant projected last week in potential sales to China, which could be affected by the new requirement, it said in the filing.
Nvidia shares tumbled 6.6% in after-hours trading Wednesday, while AMD stock was down 3.7%.
"At this time, we do not believe that shipments of MI100 integrated circuits are impacted by the new requirements," it said, referring to another line of components. "We do not currently believe it is a material impact on our business."
The new rules are a reminder of how US-China tensions remain high over business and tech.
Last week, a rare agreement between the two countries on auditing US-listed Chinese companies had suggested a breakthrough in relations, but experts have warned the deal will do little to resolve other key issues.
The new mandate for chipmakers also covers a ban in exports to Russia, Nvidia and AMD noted.
Both companies said they do not currently sell any products to Russia.
Source:
https://edition.cnn.com/2022/09/01/tech/us-nvidia-amd-chips-china-sales-block-intl-hnk/index.html