United States officials told the chip design company Nvidia that it had to stop exporting computing chips to China
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Nvidia announced in a Wednesday Securities and Exchange Commission filing that officials had told the company to stop exporting two of its top computing chips used for artificial intelligence development to China. The decision appears to be part of a larger effort by the government to avoid giving China the ability to gain an edge in innovation
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The ban will specifically affect Nvidia’s A100 and H100 chips, according to the filing, and will cost the company $400 million in sales to China. The H100 is considered the flagship chip for Nvidia and will have a notable effect on the company’s economic plans for the next year.
The company later said officials have allowed Nvidia to continue exports and in-country transfers to support customers requiring A100 chips until Sept. 1, 2023. It also said officials agreed to allow it to fulfill chip orders through its Hong Kong production facility during that period.
The U.S. government has moved to restrict technology exports to China for several years. The efforts have escalated in recent years, although the Commerce Department has done very little to restrict the trade of tech in reality.
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President Joe Biden sparked a surge of interest in U.S. chips in August when he passed the CHIPS Act, which will provide hundreds of billions of dollars in funding to tech companies and chip foundries to help American companies work to beat China in the innovation race. China has not been fond of the legislation, arguing it will increase competition and create unnecessary tension between the two countries.
