US Regulators Request Nvidia and AMD to Limit Export of AI Chips to Middle East; China Restrictions Causing Concerns
Summary:
US regulators have asked Nvidia and AMD to limit the export of AI chips to some Middle Eastern countries. Nvidia's A100 and H100 chips are affected, but specific countries are not mentioned. The quarterly report states that the regulations won't immediately impact business. However, concerns are raised about long-term consequences if excluded from the Chinese market. China, the US, and Taiwan constitute a significant portion of Nvidia's sales. Additional restrictions on AI chip exports to China are being considered by the US, while China plans to control gallium and germanium exports.
US regulators have requested Nvidia to limit the export of AI chips to certain Middle Eastern countries, states the company's latest quarterly report. The new regulations specifically impact Nvidia's A100 and H100 chips, which are crucial in accelerating machine-learning tasks. The report, released on August 28, does not specify the impacted countries in the Middle East. AMD, a direct competitor of Nvidia, also received a similar request from US regulators regarding the ban on high-level AI chip exports to select Middle Eastern countries. However, Nvidia mentioned that these regulatory changes would not have an immediate material impact on their business nor significantly affect their revenue. Nonetheless, the company is collaborating with the US government to address the issue. In addition, the report highlights the existing AI chip export regulations imposed by the US government on China. Nvidia affirmed that despite these restrictions, they have been able to sell alternative products, such as the A800 or H800 chips, in the Chinese market. However, they expressed concern about the potential long-term consequences if they are effectively excluded from China entirely. Notably, a large portion of Nvidia's recent fiscal quarter sales, amounting to $13.5 billion, originated from the US, China, and Taiwan, with other countries contributing around 13.9%. The initial export controls were implemented by the Biden administration in October 2022, aiming to isolate China from high-powered semiconductor chips. Furthermore, officials in Washington are reportedly contemplating further restrictions on AI chip exports to China, including limiting computing power, to impede chip availability in the Chinese market. In response, the Chinese government has announced its intention to control the export of gallium and germanium products, crucial components in AI chip production. These regulations and restrictions surrounding AI have prompted other countries to reconsider their positions in the race to develop powerful systems.
Published At
8/31/2023 1:04:24 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.