China Limits Use of Nvidia and AMD Chips
China is reportedly advising companies to avoid using Nvidia's H20 and AMD's chips, particularly for government and national security purposes. This development follows approvals for both Nvidia and AMD to resume shipments of less sophisticated AI products to the country.
Background
The move comes after the White House confirmed that both Nvidia and AMD have agreed to allocate 15% of their revenue generated in China to the U.S. government. Nvidia's H20 and AMD's MI380 chips were designed to navigate previous restrictions on AI chip exports to China.
Impact
Concerns surrounding the safety of these chips, as expressed in Chinese state media, add further complexity to the situation. Former President Trump has also commented, labeling Nvidia's H20 chip as 'obsolete'.
Market Significance
Nvidia CEO Jensen Huang has previously highlighted the critical importance of the Chinese market, estimating its value at $50 billion.