Nvidia Claims the U.S. Government Is Open to A.I. Chip Development in China
Nvidia announced Thursday that the U.S. government would allow it to continue the development of its H100 artificial Intelligence chip in China. This is a victory for the company, which had warned Wednesday about new export restrictions that could hinder its operations in China.
Nvidia stated Wednesday in an SEC filing that the U.S. government has restricted sales to China and Russia of high-performance AI chips for servers, the A100/H100. Both chips are not available for sale in these markets. However, the H100 can be developed in China. Nvidia anticipates a $400m revenue hit from the new export restrictions in the current quarter.
Stocks of the company fell almost 9% during trading on Thursday.
Nvidia stated in a Thursday filing that the U.S. government had authorized exports, repatriations, and in-country transfers to continue NVIDIA Corporation or the Company’s development of H100 Integrated Circuits.
Because of concerns that Chinese companies might use certain equipment and semiconductors for military purposes, the Biden administration has begun to restrict U.S. exports. Graphics processors such as the Advanced Microdevices made are ideal for artificial intelligence applications, which could include weapon development and facial recognition.
Nvidia’s forthcoming enterprise AI chip, the H100, was originally expected to ship in the second half of this year. Its development is largely done in China. The A100, an older model, has been in production for three years. Both are graphics processors that can both be used for artificial intelligence and supercomputing.
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