Nvidia reports that the United States has instructed an immediate cessation of certain AI chip exports to China.

26 Oct, 2023

Nvidia reports that the United States has instructed an immediate cessation of certain AI chip exports to China.

Nvidia, the prominent chip designer, has recently disclosed that it received an order from the United States instructing an immediate cessation of some of its high-end artificial intelligence chip exports to China. This development comes as regulators accelerated the deadline for implementing these restrictions.

Originally scheduled to take effect 30 days after the October 17th announcement by the Biden administration, these measures aimed to prevent countries, including China, Iran, and Russia, from acquiring advanced AI chips designed by companies like Nvidia.

While Nvidia has not publicly disclosed the reason behind the accelerated timing, the company did state that it does not anticipate a significant immediate impact on its earnings resulting from this directive.

Advanced Micro Devices, a fellow semiconductor company, is also impacted by these restrictions. However, at the time of reporting, they had not responded to Reuters' requests for comments. The U.S. Department of Commerce, when approached for a statement, declined to provide any comments.

Intel, which commenced the sale of its Gaudi 2 chips in China in July, announced that it is currently "reviewing the regulations and assessing the potential impact."

This U.S. export ban specifically affects Nvidia's modified advanced AI chips, namely the A800 and H800. These chips were designed for the Chinese market to comply with previous restrictions, but now face limitations due to the new regulatory environment.