The US restricts Nvidia chip exports; additional licensing required amidst AI boom


Last year, the U.S. halted Nvidia's chip exports to China due to concerns over potential military applications. Recently, Nvidia reported a quarterly revenue of $13.5bn, surpassing expectations by $2bn. Nvidia's CEO, Jensen Huang, has cautioned the U.S. about the potential repercussions of continued trade restrictions with China.

Where’s all this coming from?

Well, The U.S. government has extended export restrictions on Nvidia's artificial intelligence chips, including the A100 and H100 models, beyond China to certain Middle Eastern countries.

Nvidia said in a statement that during the second quarter of fiscal year 2024, the United States government would be implementing additional licensing requirements for a subset of A100 and H100 product lines. 

Nvidia, valued at $1.2tn, mentioned that these chips play a crucial role in accelerating machine-learning tasks in major AI applications like ChatGPT. 

While the company doesn't foresee an immediate significant impact on its financial results, it hasn't specified which Middle Eastern nations are affected. AMD, Nvidia's competitor, has also been informed of similar restrictions. 

Nvidia understands that China is a very important market for the technology industry. Jensen Huan

This move intensifies the Biden administration's strategy to limit Beijing's access to the AI surge.