Nvidia is reportedly modifying its artificial intelligence (AI) chips to comply with U.S. export rules, allowing them to be sold to Chinese companies like Alibaba, ByteDance, and Tencent without violating the restrictions placed by the U.S. government. According to a report from The Information, Nvidia CEO Jensen Huang informed key customers about the adjustments during a visit to Beijing in mid-April, shortly after the U.S. government imposed new export limits on Nvidia's H20 AI chips to China.
These new export curbs significantly impacted Nvidia’s business, as it stood to lose approximately $5.5 billion in revenue due to restrictions on its primary AI chip, which was legally allowed to be sold in China. To navigate this, Nvidia is working on a China-specific version of its next-generation Blackwell AI chip, aiming to meet the U.S. export rules while keeping the chips as close as possible to their original design. Nvidia plans to offer customers a sample of the redesigned chip by June.
The restrictions on selling advanced AI chips to China have sparked ongoing tensions, as the U.S. seeks to maintain its competitive edge in the AI race. By developing tailored versions of its chips that adhere to these export limits, Nvidia hopes to continue serving the crucial Chinese market without violating international regulations.
This move highlights the challenges tech companies face as the geopolitical landscape evolves, with companies like Nvidia balancing their business interests with complex compliance requirements.
