- Nvidia Corp NVDA informed that the U.S. government would allow it to continue developing its H100 artificial intelligence chip in China.
- The U.S. granted permission to Nvidia to perform exports needed to support U.S. customers of A100 through March 1, 2023.
- Additionally, it permitted A100 and H100 order fulfillment and logistics through Nvidia’s Hong Kong facility through September 1, 2023.
- Also Read: China Voices Displeasure Over US Chips Act; Warns Against Aggressive Standoff
- Earlier, it acknowledged that U.S.’s new export restrictions could hamper its operations in the country.
- Nvidia noted that its third-quarter guidance included about $400 million in potential sales to China, which may be subject to the new license agreement.
- U.S. restricted sales of high-performance AI chips for servers, the A100 and H100, to China and Russia.
- However, it authorized exports, reexports, and in-country transfers needed to continue Nvidia’s development of H100 integrated circuits.
- The U.S. aimed to restrict U.S. exports of certain semiconductors and equipment, fearing China’s exploitation of the same for military purposes.
- Nvidia CEO Jensen Huang warned analysts against Chinese cloud companies slowing down building out their data centers and that China was a “very large market” for the company, CNBC reports.
- Now Nvidia can continue to ship AI chips from its Hong Kong facility through September 2023.
- Some analysts are optimistic that Nvidia can reduce the impact of the new export restrictions by working with the government. However, clarity is pending over China’s retaliation.
- The U.S. took steps to restrict China’s access to cutting-edge semiconductor technology, including imposing restrictions on China’s chipmakers.
- Price Action: NVDA shares traded lower by 0.17% at $139.14 in the premarket on the last check Friday.
- Photo via Wikimedia Commons
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