US fears military use of Nvidia chips in China

U.S. Orders Chipmaker Nvidia to Limit Exports to China Over Fears of Possible Military Use

ivan rodriguez gelfenstein

R. Gelfenstein — The U.S. government has ordered Nvidia to stop exporting AI accelerator chips to China, halting a deal the chip designer expects to generate about $400 million in sales this quarter.

The administration headed by Joe Biden is now applying to Nvidia for a special license to export its products to China, including the A100 and H100 chips.

According to information released by the company itself, the government wants to reduce the risk of these processors being used by the armed forces of this country.

Upon learning of the government's order, Nvidia's stock fell 6.66% to $141 a share in e-commerce after the New York markets closed.

The law provides for a total investment of US$ 280 billion, of which US$ 52.7 billion is intended to promote the construction and expansion of national semiconductor factories with subsidies and additional credits.

In early August, U.S. President Joe Biden said China was trying to influence the microchip manufacturing law, which he signed, and that it will strengthen supply chains to improve the U.S. country's position against Chinese competition.

All in an effort to reverse America's massive reliance on overseas-made microchips, especially in China.

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