AI chips: Nvidia and AMD will stop selling certain technologies to China

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CNN Business

Two of the major U.S. chipmakers have been ordered to stop selling some of their technology that can be used for artificial intelligence to China.

Nvidia (NVDA) and AMD (AMD) announced on Wednesday that the US government had asked them to suspend exports of certain high-performance chips to the world’s second-largest economy.

In a regulatory filing, Nvidia said U.S. officials told it the requirement was due to a potential risk of the products being used or diverted to a “military end user.”

The restrictions cover Nvidia’s A100 and upcoming H100 ICs, as well as any systems that include them, effective immediately, he said.

The move threatens to upend $400 million in revenue for Nvidia, according to the filing.

That’s roughly what the California-based tech giant projected last week in terms of potential sales to China, which could be affected by the new requirement, it said in the filing.

Nvidia stock fell 6.6% in after-hours trading on Wednesday, while AMD stock fell 3.7%.

In a statement to CNN Business, Nvidia said it was working with “customers in China to satisfy their planned or future purchases with alternative products and may apply for licenses when replacements are not sufficient.”

AMD, which is also headquartered in California, told CNN Business it has also received new requirements from the US Department of Commerce that will affect shipments of its MI250 ICs to China.

β€œAt this time, we do not believe shipments of MI100 ICs will be affected by the new requirements,” he said, referring to another range of components. “We don’t currently believe this will have a material impact on our business.”

The new rules are a reminder of how high US-China tensions remain over business and technology.

Last week, a rare agreement between the two countries on auditing Chinese companies listed in the United States suggested a breakthrough in relations, but experts warned that the agreement would do little to solve problems. other key issues.

The new mandate for chipmakers also covers a ban on exports to Russia, Nvidia and AMD noted.

Both companies said they currently do not sell any products to Russia.

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