Chipmaker Kept Some China Customers in the Dark About New Curbs

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

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The US chipmaker disclosed on April 15 that American officials had informed the company on April 9 that its H20 chip would require an export license for sales to China.

The move to restrict H20 shipments marks Washington's latest effort to limit China's access to advanced semiconductors, as the US seeks to maintain its edge in AI technology.

Major Chinese cloud companies were still anticipating H20 deliveries by the 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.