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Nvidia and AMD are Ordered by the US to Halt Supplying AI Chips to China.



Two of the most successful chipmakers in the United States, Nvidia (NVDA) and AMD (AMD), have been ordered to stop providing China with access to certain components of their technology that can be utilized for artificial intelligence applications.
Nvidia (NVDA) and AMD (AMD) announced on Wednesday that they had received instructions from the government of the United States to block the export of particular high-performance chips to the economy that is the second largest in the world.
Nvidia stated in a regulatory filing that it had been informed by US officials that the restriction was imposed because there was a possibility of the products being used by or diverted to a “military end user.” This information was provided by US officials.

According to the statement, the limits will take effect immediately and will apply to any and all systems that use Nvidia’s A100 and soon-to-be-released H100 integrated circuits.

According to the filing, the action may cause Nvidia to lose revenue of approximately $400 million.
According to the document, this is exactly the amount that the technology giant located in California estimated it would make in possible sales to China last week. These sales could be impacted by the new rule.

In trading that took place after regular market hours on Wednesday, shares of Nvidia fell 6.6%, while shares of AMD fell 3.7%.

According to a recent article, Nvidia has stated that it is collaborating with “customers in China to satisfy their planned or future purchases with alternative products and may seek licenses when substitutes aren’t suitable.”
According to a recent report, AMD, which also has its headquarters in California, was informed by the United States Department of Commerce that it had been handed new requirements. These new criteria will have an impact on the company’s shipments of its MI250 integrated circuits to China.
Referring to a different line of components, it stated, “At this point, we do not believe that shipments of MI100 integrated circuits are impacted by the new criteria.” “At this time, we do not feel that it will have a significant impact on our company.”
The new rules serve as a reminder that tensions between the United States and China remain high over issues pertaining to commerce and technology.
A rare agreement between the two countries on auditing US-listed Chinese companies had suggested a breakthrough in relations last week, but experts have warned that the deal will do little to resolve other key issues. The agreement came about as a result of a rare agreement between the two countries on auditing US-listed Chinese companies.

According to Nvidia and AMD, the new directive for chipmakers includes a prohibition on the shipment of goods to Russia.
Both businesses reported that they do not now offer any products for sale in the Russian market.

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