US government stops supply of Nvidia chips to China

US government stops supply of Nvidia chips to China

2. September 2022 0 By Horst Buchwald

US government stops supply of Nvidia chips to China

2.9.2022

The U.S. government is requiring Nvidia to apply for export licenses to sell two high-end graphics processors for AI research and tasks. While Nvidia said it could apply for the licenses, it has no assurance that such exemptions will be granted.

The measure bars the supply of certain AI chips to Chinese technology companies for tasks such as photo categorization, image recognition and satellite image scanning.

The export restrictions affect Nvidia’s A100 and H100 chips. Nvidia said the licensing requirements could affect the completion of its upcoming H100 chip, its next-gen GPU for faster AI model training.

Nvidia, the world’s largest GPU maker, said the ban will affect its projected $400 million in third-quarter sales of those chips in China.

The company is still allowed to develop the H100 in China. It can process orders for the two high-end chips through its Hong Kong office until Sept. 1, 2023. It can make exports needed to support its A100 customers in the U.S. until March 1, 2023.

In imposing the restriction, the U.S. government cited possible military applications in China as the two countries compete for technology dominance. This will likely impact Chinese companies using the chips for AI-based applications.

The requirement also affects AMD’s Instinct MI200 and upcoming MI250X for AI tasks, although AMD said it will not have a significant impact on its business.
For both chipmakers, the same restrictions also apply in Russia, although they do not currently sell chips there.

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