NVIDIA gets a warning from U.S. Commerce Secretary Gina Raimondo and Jensen Huang NVIDIA is consistently exploring ways to navigate the recent restrictions imposed on the export regulations of advanced chips by the US government. The company has recurrently introduced new hardware designed to maneuver around new limitations, whether related to the intricacies of multi-chip […]
U.S. issues warning to NVIDIA, urging to stop redesigning chips for China::undefined
The second Nvidia came out with that press release about a special China-specific version I was expecting this to happen. Honestly, I’m not quite sure what they’re thinking. Congress is CLEARLY trying to control the export of this technology and limit the access the PRC has to it. Trying to end-run what will likely become an ITAR issue (if it isn’t already) is an objectively bad corporate strategy. The penalties for that sort of thing are fucking serious.
Absolute boneheaded move by NVIDIA. Guess they just saw dollar signs and stopped thinking. What I don’t get is they are already at like 300% capacity I don’t think there will be any business short falls from selling only to US customers
They clearly realise that if China can’t buy their chips, the CPC will put the full force of a planned economy behind making their own. Once that happens cheap Chinese AI chips will eat their lunch.
Exactly. They want to maintain their insane margins with their oligopoly. The second you get a viable cheap competitor, it will all come crashing down.
Of course, it’s a massive undertaking to catch up enough to be feasible. But China has the manufacturing experience, and a government initiative could allocate an insane amount of resources behind it if they were motivated to.
So it’s obviously in NVidia’s best interest to deter it with appeasement.
Really, the only big market that is being targeted by the restrictions is Mainland China (pointedly not including Russia because it’s honestly not a very big market compared to like… New York State or Texas or California). Nvidia would have been fine.
I think you’re right: they got greedy (shocking, I know)
The second Nvidia came out with that press release about a special China-specific version I was expecting this to happen. Honestly, I’m not quite sure what they’re thinking. Congress is CLEARLY trying to control the export of this technology and limit the access the PRC has to it. Trying to end-run what will likely become an ITAR issue (if it isn’t already) is an objectively bad corporate strategy. The penalties for that sort of thing are fucking serious.
Absolute boneheaded move by NVIDIA. Guess they just saw dollar signs and stopped thinking. What I don’t get is they are already at like 300% capacity I don’t think there will be any business short falls from selling only to US customers
I think it’s quite clever actually.
They clearly realise that if China can’t buy their chips, the CPC will put the full force of a planned economy behind making their own. Once that happens cheap Chinese AI chips will eat their lunch.
Exactly. They want to maintain their insane margins with their oligopoly. The second you get a viable cheap competitor, it will all come crashing down.
Of course, it’s a massive undertaking to catch up enough to be feasible. But China has the manufacturing experience, and a government initiative could allocate an insane amount of resources behind it if they were motivated to.
So it’s obviously in NVidia’s best interest to deter it with appeasement.
Really, the only big market that is being targeted by the restrictions is Mainland China (pointedly not including Russia because it’s honestly not a very big market compared to like… New York State or Texas or California). Nvidia would have been fine.
I think you’re right: they got greedy (shocking, I know)