
U.S. officials order Nvidia to halt sales of top AI computing chips to China amidst Taiwan tensions
The HinduChip designer Nvidia Corp. on Wednesday said that U.S. officials told it to stop exporting two top computing chips for artificial intelligence work to China, a move that could cripple Chinese firms' ability to carry out advanced work like image recognition and hamper a business Nvidia expects to generate $400 million in sales this quarter. Nvidia said U.S. officials told it the new rule "will address the risk that the covered products may be used in, or diverted to, a "military end use" or "military end user" in China." The announcement signals a major escalation of the U.S. crackdown on China's technological capabilities as tensions bubble over the fate of Taiwan, where chips for Nvidia and almost every other major chip firm are manufactured. Nvidia said it had booked $400 million in sales of the affected chips this quarter to China that could be lost if Chinese firms decide not to buy alternative Nvidia products.
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