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Nvidia details advanced AI chips blocked by new export controls

Published 10/17/2023, 06:14 PM
Updated 10/17/2023, 07:50 PM
© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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By Max A. Cherney and Stephen Nellis

(Reuters) -Nvidia said on Tuesday that new U.S. export restrictions will block sales of two high-end artificial intelligence chips it created for the Chinese market and that one of its top-of-the-line gaming chips will also be blocked.

Nvidia (NASDAQ:NVDA), in a filing late on Tuesday, disclosed the impact from the restrictions, which seek to stop Beijing from receiving cutting-edge U.S. technologies to strengthen its military.

The new restrictions will also affect rival chips produced by Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC), according to analysts.

In its filing, Nvidia said two of its modified advanced AI chips - the A800 and H800 - both of which it created for the Chinese market to comply with previous export rules, would be blocked for sale under the new rules. One of the company's top-of-the-line gaming chips will be restricted, as will the L40S chip, which it announced in August, it said.

Nvidia declined to comment beyond the filing.

Chips being built by Intel and Advanced Micro Devices that aim to compete with Nvidia will also be impacted. Dylan Patel, chief analyst at SemiAnalysis, said Intel's Gaudi 2 chip, which it began selling in China in July, will be banned under the new rules. Intel built a specific version of the chip to comply with last year's rules, the company has said in the past.

Intel declined to comment on the Gaudi 2 chip and said it was assessing the new rules.

AMD's current AI chip, the MI250, may be captured by the tightened controls, according to an analysis from Bernstein analyst Stacy Rasgon. And it's likely that AMD's forthcoming MI300 chip will be captured by the new rules, Patel said.

AMD declined to comment.

© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

According to Nvidia's filing, the company may be forced to move some business operations out of countries that are in the purview of U.S. export curbs after the Biden administration on Tuesday expanded restrictions on export of certain high-end technology.

The chipmaker said the new rules may impact its ability to complete the development of certain products in a timely manner, support existing customers of those products, or supply customers of those products outside the affected regions.

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