Chipmaker Nvidia said US officials had ordered it to stop exporting two of its top artificial intelligence computer chips to China.
Shares of Nvidia fell 6.6% in after-hours trading. The company said the ban, which affects the A100 and H100 chips designed to speed up machine learning tasks, could prevent it from completing development of the H100, the flagship chip Nvidia announced this year.
Nvidia said U.S. officials told it the new rule “will address the risk that covered products could be used or diverted to a ‘military end use’ or ‘military end user’ in China.”
“While we are unable to outline specific policy changes at this time, we are taking a comprehensive approach to taking the necessary additional actions related to technology, end-uses, and end-users to protect U.S. national security and foreign policy interests.” , said a spokesman quoted by BGNES.
The announcement signals a major escalation in U.S. measures against China’s technology capabilities as tensions rise over the fate of Taiwan, where chips for Nvidia and nearly all other major chip firms are made.
Without American chips from companies like Nvidia and AMD, Chinese organizations will not be able to perform cost-effective modern computing used for image and speech recognition, among many other tasks.
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