The US government imposes restrictions on Nvidia GPUs
The US government has imposed trade restrictions on Nvidia's H100 and A100 GPUs in order to prevent the chips from being resold to China and to hinder China's AI development. The move comes after concerns that the tech giant's components are being used to develop AI models overseas that could be repurposed to benefit the Chinese defence industry.
The restrictions follow a broader clampdown on Nvidia sales in China and Russia. The affected chips are already restricted in those two countries, but the new controls extend them to the Middle East. The specific countries in the Middle East impacted by the controls weren't disclosed, but Saudi Arabia and the UAE are significant purchasers of Nvidia's chips and both countries have been strengthening their AI capabilities.
"Nvidia's products are subject to governmental export controls," a company spokesperson tells The Guardian. "Nvidia is complying with these requirements and will continue to cooperate with the U.S. government on this matter."
The US government is concerned about the diversion of GPUs to China, as well as Chinese companies training AI models overseas to benefit its defence sector. The controls are seen as an attempt to address those concerns.
Nvidia says the licensing requirement doesn't significantly affect its revenue. The company tells us it is working with the US government to address the issue.
Read more on The Guardian.