Over national security concerns, the US government has ordered graphics chip company Nvidia and semiconductor manufacturer AMD not to sell artificial intelligence (AI) processors to China.
Nvidia stated in an SEC filing that the Joe Biden administration informed the business "about a new licensing requirement for future shipments to China, including Hong Kong, to lessen the possibility that the equipment may be utilized by the Chinese military."
According to CNN, US authorities warned Nvidia that the restriction was imposed owing to a potential danger of the devices being utilized by or diverted to a "military end user."
The decision is expected to cost the corporation $400 million in potential sales in China in the current quarter.
"We are working with our clients in China to meet their planned or future orders with alternative goods, and we may seek licenses if substitutes are insufficient," an Nvidia spokeswoman said.
On Thursday, industry expert Ming-Chi Kuo tweeted that China leads the world in AI patent filing, and that "the US's limitation on AI chip sales will ensure the US dominance in the AI domain."