US stops Nvidia and AMD from selling AI chips to China and Russia • The Register

As part of ongoing efforts to limit China and Russia’s access to advanced American technology, the US government last week banned AMD and NVIDIA from selling some AI kits to China.

“The US government has imposed a new licensing requirement effective immediately for any future export to China (including Hong Kong) and Russia of the company’s A100 and forthcoming H100 integrated circuit,” said Nvidia in an SEC filing.

Items covered by the license include the NVIDIA A100 Tensor Core GPU, the A100x, which adds a data processing unit (SmartNIC) to the A100, and the H100 GPU, which Nvidia claims will make natural language processing apps sing.

“The USG indicated that the new license requirement will address the risk that the covered products may be used for, or diverted to, a ‘military end-use’ or ‘military end-user’ in China and Russia,” reads Nvidia’s application for license . The filing adds that the company does not sell products to customers in Russia.

Nvidia’s filing also warns that the new export license requirement could prevent the company from developing the H100 or support existing A100 customers, and potentially require moving some operations out of China. Additionally, it said its guidance for the third quarter of 2022, which included $400 million in sales to China, may now be inaccurate.

Nvidia said it is seeking exemptions from authorities regarding its internal development and support activities. It is also trying to swap banned products for legal ones for its China-based customers.

However, AMD has not issued an SEC filing on the license, a spokesman said allegedly said the company has been ordered to stop shipping its best AI accelerator, the MI250, to China. AMD said it doesn’t expect the rules to have a material business impact.

AMD allegedly informed its China operations of the changes on Wednesday.

News of the bans sent Nvidia shares down 2 percent and AMD shares down 3.7 percent in after-hours trading.

The US has steadily restricted China’s access to semiconductor technology since at least 2019, when the Trump administration banned Huawei from buying key US technology without authorization and banned its devices from appearing on US telecom networks.

Last month the US officially forbidden the export of four technologies related to semiconductor manufacturing, citing them as “vital to national security.” The ban included the export of two ultra-wide bandgap semiconductor materials, as well as some types of electronic computer-aided design (ECAD) software commonly used to scale semiconductors to 3 nanometers or less, and pressure-boost combustion (PGC). Technology.

China has a policy of extensively using AI to run government services and make industry more productive.

The new license will therefore worry Beijing and perhaps also increase the already tense stakes Relations between the US, Taiwan and China because Nvidia and AMD both have some chips made by Taiwan Semiconductor Manufacturing Company (TSMC). ® US stops Nvidia and AMD from selling AI chips to China and Russia • The Register

Laura Coffey

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