Chinese authorities have ordered Nvidia and AMD to stop supplying certain high-performance chips used in artificial intelligence to China. The action would have an impact on Nvidia's A100 and H100 chips made to accelerate machine learning activities and stop AMD from shipping its MI250 chips to China. The restrictions might cost Nvidia $400 million in lost sales in China, which is equivalent to about Rs. 3,180 crore. It will be a setback for Chinese companies' cutting-edge work, which includes speech and picture recognition.
According to a report by Reuters, the US government has instructed Nvidia and AMD to stop exporting specific high-performance chips to China.
Nvidia stated in a regulatory filing that the limitations would apply to the company's operations in China, the A100 circuit, and the construction of the upcoming H100 integrated circuit. The Chinese companies' programmes for image recognition are also anticipated to be impacted. For Nvidia, the new regulations would result in a $400 million loss of revenue.
According to the application, new regulations will address the possibility that the covered equipment could be diverted to or used by "military end users" in China and Russia.
Shipments of MI250 artificial intelligence processors will be affected by new licencing restrictions, an AMD spokeswoman was quoted as saying by Reuters. The move won't have an impact on the export of MI100 integrated circuits, he noted. The business stated that it doesn't think the new regulations will materially affect its operations.
