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US orders Nvidia, AMD to cease exporting high-end AI chips to China

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US orders Nvidia, AMD to cease exporting high-end AI chips to China

Chinese authorities have ordered Nvidia and AMD to cease supplying specific high-performance processors used in artificial intelligence to China (AI). The action would impact Nvidia’s A100 and H100 processors intended to accelerate machine learning activities and stop AMD from shipping its MI250 chips to China. The limitations might cost Nvidia $400 million in lost sales in China, equivalent to about Rs. 3,180 crores. It will be a setback for Chinese companies’ cutting-edge work, which includes voice and picture recognition.

According to a report by Reuters, the US government has instructed Nvidia and AMD to stop exporting specific high-performance processors to China.

Nvidia stated in a regulatory filing that the limitations would apply to the company’s operations in China, the A100 circuit, and the construction of the following H100 integrated circuit. The Chinese firms’ programs for image recognition are also anticipated to be impacted. For Nvidia, the new regulations would result in a $400 million loss of revenue.

According to the application, new regulations would address the possibility that the covered equipment may be diverted to or utilized by “military end users” in China and Russia.

Shipments of MI250 artificial intelligence processors will be affected by new licensing restrictions; an AMD spokeswoman was quoted as saying by Reuters. He noted that the change wouldn’t impact the export of MI100 integrated circuits. The firm stated that it doesn’t think the new regulations would materially affect its operations.

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