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Nvidia can’t sell AI chips to China: US govt

San Francisco, Sep 1 (IANS) The US authorities has ordered graphics chip large Nvidia not to sell its synthetic intelligence (AI) chips to China over nationwide safety considerations.

In a submitting with the US Securities and Exchange Commission (SEC), Nvidia mentioned the Joe Biden authorities informed the corporate “a few new license requirement for future exports to China, together with Hong Kong, to scale back the chance that the merchandise could also be utilized by the Chinese army”.

Nvidia shares fell 6.5 per cent in prolonged buying and selling on Wednesday after the information got here out, experiences CNBC.

The firm expects the transfer will value it $400 million in potential gross sales in China within the present quarter.

The new licensing rule additionally applies to gross sales to Russia, However, Nvidia mentioned it does not have a market base there.

“We are working with our prospects in China to fulfill their deliberate or future purchases with different merchandise and will search licenses the place replacements aren’t enough,” a Nvidia spokesperson was quoted as saying.

Industry analyst Ming-Chi Kuo tweeted on Thursday that China leads the world in AI patent submitting, “and US’s restriction on AI chip gross sales would safe the US lead within the AI space”.

“It is value noting whether or not Chinese shoppers will instantly/not directly place rush orders to improve stock to scale back the potential danger from US gov’s attainable enlargement of gross sales restrictions. If so, which may profit provide chain utilization charges within the brief time period,” he talked about.

Kuo mentioned that the impression of the gross sales restriction on suppliers corresponding to TSMC is proscribed, however buyers fear that the US authorities “might broaden restrictions on extra chips which might have an effect on extra server-related or different merchandise” and this “uncertainty could possibly be a structural danger for the semiconductor sector”.

(Except for the headline, the remainder of this IANS article is un-edited)

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