The world's largest chip company faces new challenges.

The US has expanded restrictions on Nvidia's artificial intelligence chips beyond China and Russia to other regions, including several countries in the Middle East.

Nvidia (one of the world's most valuable companies with a market capitalization of $1.2 trillion) stated that the restrictions affecting the A100 and H100 chips are designed to accelerate machine learning tasks.

“During the second quarter of fiscal year 2024 (ending July 30), the U.S. government notified us of additional licensing requirements for the A100 and H100 products for certain customers and regions, including some countries in the Middle East,” Nvidia said.

The A100 and H100 chips are tools that support software training such as ChatGPT. The Biden administration banned Nvidia from selling these products to China and Russia. The company therefore developed the lower-performance H800 and A800 models for sale in China.

Nvidia did not provide a reason for the new restrictions, nor did it specify which countries in the Middle East were affected.

Both Saudi Arabia and the United Arab Emirates (UAE) are aggressively purchasing Nvidia chips (also known as graphics processing units (GPUs)) to boost their technology sectors.

However, Nvidia's revenue in this region is insignificant. The majority of the company's $13.5 billion in second-quarter revenue came from the US and China, with approximately 13.9% coming from all other countries combined.

Despite the new restrictions, Nvidia stated that the licensing requirements would not significantly impact the company's revenue, and that they are working with the US government to resolve the issue .

Nguyen Tuyet (According to Reuters, Tom's Hardware)

Source: https://www.nguoiduatin.vn/cong-ty-chip-lon-nhat-the-gioi-doi-mat-thach-thuc-moi-a624264.html