Nvidia 'kept some China customers in dark on new rules'

Nvidia did not warn at least some major customers in advance about new US export rules as it was told about a week ago, requiring it to obtain licenses to sell its China-focused artificial intelligence chip, according to two sources familiar with the matter.

- FANNY POTKIN LIAM MO

The US chipmaker disclosed on Tuesday that American officials had informed the company on April 4 that its H20 chip would require an export licence for sales to China.

The move to restrict Nvidia’s sales marks Washington’s latest effort to limit China’s access to advanced semiconductors, as the United States seeks to maintain its edge in AI technology.

Major Chinese cloud companies were still anticipating H20 deliveries by year-end, unaware of the impending restrictions, according to the two sources, who said Nvidia’s China sales team also did not appear to be informed ahead of the public announcement. They spoke on condition of anonymity because of the sensitivity of the matter.

Nvidia said in a statement on Wednesday it is adhering to export laws on where it can sell its processors.