March 25, 2023

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Nvidia to Sell New Chip in China: Says Meets US Export Ban

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Nvidia Corp., the world's most valuable chipmaker, has begun manufacturing a processor for China that complies with new laws intended at limiting...
Nvidia to Sell New Chip in China: It Says Meets US Export Ban

Nvidia Corp., the world's most valuable chipmaker, has begun manufacturing a processor for China that complies with new laws intended at limiting that country's access to artificial-intelligence computing.

Nvidia Corp., the world’s most valuable chipmaker, has begun manufacturing a processor for China that complies with new laws intended at limiting that country’s access to artificial-intelligence computing.

Nvidia announced in a statement Monday that the A800 GPU, or graphics processing unit, entered into production in the third quarter and will be an alternative to the A100 model. “The A800 fulfils the US government’s explicit test for reduced export restriction and cannot be programmed to exceed it,” stated the chipmaker based in Santa Clara, California.

Nvidia announced in a statement Monday that the A800 GPU, or graphics processing unit, entered into production in the third quarter and will be an alternative to the A100 model. “The A800 fulfils the US government’s explicit test for reduced export restriction and cannot be programmed to exceed it,” stated the chipmaker based in Santa Clara, California.

Nvidia to Sell New Chip in China: It Says Meets US Export Ban

Nvidia shocked investors earlier this year when it announced that it would be banned from selling the A100 and upcoming H100 devices to Chinese consumers unless special US government approval was obtained. The adjustment jeopardised hundreds of millions of dollars in revenue. According to Nvidia in an August regulatory filing, the US is afraid that the CPUs would be used by the military.

Last month, the Biden administration tightened the limits, raising tensions between the two countries and creating new obstacles for US chipmakers already facing a fall in demand. Nvidia has lost more than half of its value this year, after three years of growth.

Data centres rely on graphics hardware from companies like Nvidia to conduct AI tasks and process massive amounts of data. The US government’s limits on China exports limit the speeds at which such chips may communicate with one another, limiting their utility.

According to Reuters, Nvidia has began selling the A800.

According to a Center for Strategic and International Studies analysis, “the White House is attempting to limit the controls to chips that are designed to be networked together in data centres or supercomputing facilities that train and run large AI models by only targeting chips with very high interconnect speeds.”

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