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US Orders Nvidia, AMD to Stop Selling Top AI Chips to China

Nvidia’s A100 and upcoming H100 integrated circuits will be impacted by the restrictions.

Nvidia and AMD have been ordered to stop selling some of their high-performance chips to China that can be used for artificial intelligence (AI). The move would affect Nvidia’s A100 and H100 chips, which are designed to speed up machine learning tasks and prevent AMD’s MI250 chips from being shipped to China. The restrictions will affect Nvidia’s business in China, costing up to US$400 million (around Rs.3,180 billion) in potential sales. It will be a setback for Chinese firms’ advanced work, including image and speech recognition.

Nvidia and AMD have been ordered by the US government to halt exports of certain high-performance chips to China, according to a Reuters report.

In a regulatory filing, Nvidia said the restrictions would cover Nvidia’s A100 circuit and the completion of the forthcoming H100 integrated circuit alongside the company’s business in China. It is also expected to have an impact on image recognition projects undertaken by Chinese companies. The new rules would cost Nvidia $400 million worth of deals.

According to the filing, new rules will address the risk that the covered products may be used or diverted to a “military end-use” or “military end-user” in China and Russia.

New licensing requirements will affect shipments of MI250 artificial intelligence chips, Reuters reported, citing an AMD spokesman. The export of MI100 integrated circuits will not be affected by the move, he added. The company said it doesn’t think the new rules will have a material impact on its business.

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