Nvidia is ordering its data centre partners to reduce exposure to Chinese customers, requiring that at least 51% of services be sold to non‑Chinese firms. The verbal directive, delivered by sales and regional teams, threatens Chinese AI ambitions as Washington tightens chip restrictions. The new rule applies globally to future contracts and not to existing leases, affecting cloud providers that struggle to find enough non‑Chinese clients outside the US.
One Singapore‑based group warns strict implementation will hurt business. Nvidia’s crackdown also fuels a shortage of advanced computing power; a B300 chip rack, priced at $600,000 internationally, now fetches Rmb18.5 million in China. Nvidia has already cut Asian customers by more than half and created a “white list” of vetted firms, reducing smuggling.
The stock fell over 13% in a month, pushing Jensen Huang's group behind Apple as the world’s most valuable listed company, now 7% higher year‑to‑date. The US aims to curb intermediaries and overseas leasing deals that bypass export controls, while data centres outside the US scramble for non‑Chinese clients. If they cannot, they may need to shrink operations, adding pressure on the global AI race.
Source: Financial Times Companies · Summarized by HeadlinesBriefing