Ban On AI Chip Sales To China Would Mean Losses: NVIDIA

Nvidia’s chief financial officer warned that if the US imposes new restrictions on the export of AI chips to China, it would result in a “permanent loss of opportunities” for US industry, Laura He reported for CNN.

Photo Insert: The rules could make it harder for companies like Nvidia (NVDA) to sell advanced chips to China. A boom in demand for its AI chips raised its market capitalization to $1 trillion in late May.

But Colette Kress, who also serves as the company's Executive Vice President said she didn’t anticipate any “immediate material impact” on the technology company if the curbs were introduced.

US officials plan to tighten export curbs announced in October to restrict the sale of artificial intelligence (AI) chips to China, according to multiple media reports, including the Wall Street Journal and Financial Times.

Washington has ramped up efforts to cut China off from key technologies that can support its military.

The rules could make it harder for companies like Nvidia (NVDA) to sell advanced chips to China. A boom in demand for its AI chips raised its market capitalization to $1 trillion in late May.

“We are aware of reports that the US Department of Commerce is considering controls that may restrict exports of our A800 and H800 products to China,” Kress said.

“Over the long-term, restrictions prohibiting the sale of our data center GPUs to China would result in a permanent loss of opportunities for US industry to compete and lead in one of the world’s largest markets and impact on our future business and financial results,” she added.

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