The government of the United States has ordered AMD and Nvidia to stop selling some of their technology to China, which can be used for artificial intelligence. Both Nvidia and AMD said that they had been told by the US government to stop exports of some high-performance chips to China.
Nvidia said it had been told by US officials that the requirement came because of a potential risk of the products being used by a military end user. The restrictions mainly cover the A100 and upcoming H100 integrated circuits of Nvidia, and any other systems that include them.
This move raises concerns that it could cost 400 million dollars in business for Nvidia. The shares of Nvidia have dropped by 6.6 percent, while the shares of AMD are down by 3.7 percent.
In a statement, Nvidia said that it was working with the customers in China to satisfy their future purchases with some alternative products, and may also seek licenses where the replacements will not be sufficient.
AMD said that it has been given new requirements by the US Department of Commerce, which will affect the shipments of its MI250 integrated circuits to China. AMD said that at this time, the company does not believe that the shipments of MI100 integrated circuits are impacted by the new requirements of the US government.
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