business1 year ago
China Urges Firms to Cease Nvidia and AMD Chip Use Amid Security Concerns
China has demanded that companies halt their orders of Nvidia chips due to security concerns, impacting the tech and business sectors.
Tag
Chip Orders
All articles tagged with #chip orders
"Nvidia's China orders canceled, faces $5B hit amid chip war"
Nvidia's stock dropped by about 5% to a near five-month low following a report that the company may have to cancel up to $5 billion worth of advanced chip orders to China due to new U.S. government restrictions. The orders, scheduled for delivery next year to major Chinese technology companies, are subject to the latest export restrictions announced by the U.S. Commerce Department. Nvidia's stock has been one of the major drivers of this year's gain in the Nasdaq index, but it is now down nearly 20% from its record high. The company stated that the new export controls will not have a meaningful impact in the near term.
China's Internet Giants Invest $5 Billion in Nvidia Chips for AI Dominance
China's internet giants, including Baidu, ByteDance, Tencent, and Alibaba, have placed orders worth $5 billion for Nvidia chips to power their generative artificial intelligence systems. The orders include 100,000 A800 processors to be delivered this year, worth $1 billion, and an additional $4 billion worth of graphics processing units to be delivered in 2024. The move comes as the Biden administration imposes restrictions on certain U.S. investments in sensitive technology in China. Nvidia's finance chief has warned that restrictions on exporting AI chips to China could result in a permanent loss of opportunities for the U.S. industry.