A post by @FirstSquawk on X.
NVIDIA HAS ORDERED DATA CENTER PARTNERS TO CUT BACK ON CHINESE CUSTOMERS, WITH CLOUD PROVIDERS NOW R…
@FirstSquawk on X
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NVIDIA has instructed its data center partners to scale back sales to Chinese customers under a new rule requiring cloud providers to sell at least 51% of their services to non-Chinese companies. The directive tightens Chinese AI firms' access to advanced chips obtained through overseas rental arrangements. The policy targets the workaround whereby Chinese developers rent compute from offshore cloud providers to circumvent U.S. export restrictions on NVIDIA's most advanced accelerators. The 51% threshold effectively caps how much of a partner's capacity can serve Chinese tenants, pushing providers to prioritize non-Chinese buyers. Watch for how quickly Chinese AI developers renegotiate cloud contracts and whether rental pricing for advanced GPU capacity rises as available supply to Chinese firms shrinks.
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Named in this story
NVIDIA (NVDA), China, Chinese AI firms, Cloud providers
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