US Offers Relaxations To Nvidia For AI Chip Development In China

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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