The Biden administration has officially prohibited Nvidia from exporting its most powerful artificial intelligence chips to China, citing national security concerns. The move is part of a broader U.S. strategy to curb China’s access to cutting-edge semiconductor technology that could be used for military or surveillance purposes.
The ban specifically targets Nvidia’s A100 and H100 chips, which are critical for training large AI models and powering data centers. These chips are widely used in advanced computing tasks such as natural language processing, image recognition, and autonomous systems.
In response to earlier restrictions, Nvidia had developed a modified chip—the RTX Pro 6000D Blackwell GPU—designed to comply with U.S. export controls by limiting performance. However, Chinese regulators have now reportedly ordered major tech firms like Alibaba and ByteDance to cancel orders and halt testing of these chips, effectively freezing Nvidia out of the Chinese market CNBC The Register.
This development follows a series of escalating measures by both Washington and Beijing. While the U.S. aims to prevent China from gaining a technological edge in AI and quantum computing, China has responded by pushing domestic firms to adopt homegrown semiconductor solutions, signaling a shift toward tech self-reliance CNBC.
The restrictions are expected to have a significant impact on Nvidia’s business, as China has historically accounted for a substantial portion of its revenue. Nvidia’s shares dropped following the announcement, reflecting investor concerns over the company’s future in one of the world’s largest tech markets Yahoo Finance.
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