Nvidia and AMD by the US government Restricting the sale of chips dedicated to artificial intelligence in Chinaso it breaks an activity that is the chip designer expected revenue of approximately $400 million this quarter, the company said in a regulatory filing Wednesday. These restrictions came shortly after Taiwan banned the sale of processors with frequencies above 25 MHz in Russia.
These announcements failed to shake Nvidia in the stock market. company lost more than 10% of its value in just a few hourst. It couldn’t have come at a worse time for Nvidia, as its sales for the third quarter of the fiscal year have already seen a significant slowdown due to the limited availability of graphics cards. We also remember this Since mid-August, the company has lost about a quarter of its stock market value.
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US limits chip exports to China
These bans are imposed by the US government. prevent companies’ high-performance GPUs from being used by the military in China or Russia. Clearly, China is dissatisfied with these restrictions, which it sees as part of the “technological blockade.”
Nvidia says the new export controls are aimed at narrow performance thresholds, not specific chips. Associated with Nvidia A100 and H100 processors, current generation chips. On the AMD side, it is the MI250 chip that is affected by these new restrictions.
It is not yet clear whether these restrictions will have any long-term impact on China’s AI capabilities. Chinese companies start developing their own GPUs. Worse still, Nvidia manufactures the A100 in Taiwan, an existing geopolitical hotspot between the United States and China. Also, if a war breaks out, we are likely to face a new worldwide chip shortage.
