U.S. Executives Instruct Nvidia to Stop Sales of Key AI Chips to China

Nvidia Corp, a chip designer company, was reportedly told by U.S. executives to discontinue exporting two key Artificial Intelligence (AI) chips to China.

This decision by the U.S. regulators could hamper Chinese companies’ advanced AI prospects , such as image recognition, and hinder Nvidia’s stand in the Chinese market.

The shares of Nvidia dropped by 6.6% hours following this announcement. The American chipmaker quoted that the ban, that impacts its H100 and A100 chips intended to boost machine learning operations, may hinder with accomplishment of creating the H100, the leading chip that Nvidia declared previously this year.

The shares of Advanced Micro Devices Inc., (AMD) a contemporary of Nvidia plummeted by 3.7% hours later. An AMD spokesperson cited that the corporation had gaine,d novel permit demands that will discontinue its MI250 AI chips from being sold to China, but it is expected that its MI100 chips will not be influenced. AMD also stated that it disagrees with the statement that these novel decisions shall have any concrete impact on its business operations.

Reportedly, Nvidia also stated that the U.S. executives quoted that this change is set to address the jeopardy that the covered components may be utilized in, or averted to a ‘military end user’ or ‘military end use’ located in China.

After being asked for comments, the U.S. Department of Commerce declined to cite what fresh stratagem they have planned out that the artificial intelligence chips will be discontinued from being exported to China but also stated saying it is revising its China-associated guidelines and processes to keep progressive technologies away from the malevolent hands.

The declaration indicates a prime acceleration of the U.S. crackdown on China’s technical competencies as tensions rise the fortune of Taiwan, a place where all the chips for Nvidia and nearly every other famous chip firm are produced.

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