Nvidia Reportedly Urges Cloud Clients to Reduce China Business
Nvidia reportedly urged some cloud computing customers to reduce their exposure to Chinese companies, with later reports describing a disputed limit that would require at least 51% of services to go to non-Chinese clients. The Information and Financial Times reporting cited sources saying the guidance primarily affects future contracts, while The Decoder said it was not mandatory and involved disclosure of end users. Nvidia neither confirmed nor denied the reported policy when contacted by AFP.
The guidance could further restrict Chinese AI developers’ remote access to advanced Nvidia compute through foreign data centers, an access route not fully covered by US chip export controls.
Nvidia has instructed its data centre partners to limit business with Chinese customers, requiring cloud computing providers to sell at least 51% of their services to non-Chinese companies, the Financial Times reported on Tuesday.
The rule applies to new contracts, leaving existing agreements untouched, according to five people familiar with the matter cited by the FT.
Nvidia reportedly communicated the requirement verbally through its sales force and regional teams rather than issuing written instructions. The company had not previously imposed such a restriction.