September 30, 2022
Nvidia CEO says US export restrictions on top data center chips leave ‘big room’ for China sales

Nvidia’s chief executive Jensen Huang said on Wednesday that he continues to see a large market for Nvidia’s data center chips in China, despite US sanctions on the export of two of its top chips to the country.

In a news conference following the company’s fall product launch, Huang said the restrictions revealed earlier this month have specific limits to both the chip’s performance as well as the processor’s ability to connect to other chips.

He said the regulations leave “a huge space for us” in the Chinese market.

“The vast majority of our customers are not impressed by the specification,” Huang said.

“So our expectation is that even for the United States and China, we’ll have a large number of products that are architecturally compatible, that are within limits and that don’t require any licenses.”

Nvidia said on September 1 that it had been asked by the US government to halt exports of its A100 and H100 chips to China, which impacted the company’s sales by $400 million (about Rs 3,228 crore) in the current fiscal quarter. It is possible The two products are Nvidia’s fastest chips and are used in data centers to speed up artificial intelligence tasks such as natural language processing.

At the news conference, Huang said that both chips are part of a larger chip lineup with “a large number of products” that may still be sold in China. Huang also said that Nvidia will seek licenses from the US government for Chinese customers who want its top chips.

“You might guess that the goal is not to undermine or disrupt our business. The goal is to know who it is that will need capabilities above this limit and to give the United States an opportunity to make decisions about that.” whether or not that level of technology should be available to others,” Huang said.

© Thomson Reuters 2022

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