(New York) American computer components maker Nvidia fell on Wall Street on Thursday after the company announced that the US government would limit its exports of graphics processors to China and Russia to prevent their use for military purposes.
Posted at 12:31 p.m
Nvidia’s stock plunged more than 11% during the session on the New York Stock Exchange.
The company first said in an IPO document released Wednesday night that it was notified by American authorities on Aug. 26 of new regulations restricting all future exports of its A100 to China, including Hong Kong, and Russia, including GPUs and the H100s under development .
Washington’s intent, Nvidia explains, is to “prevent the risk that the products in question will be used or diverted ‘for military use’ or ‘by a military actor’ in China and Russia.”
The rules could affect Nvidia’s ability to timely develop the H100, which is expected to become the company’s new AI flagship, and to ship to customers already using the A100, the company warned.
The group expected to sell about $400 million of these products to China in the third quarter.
Nvidia also ensures that it does not directly market any product in Russia.
Following these statements, the US government softened its position somewhat.
In another IPO document released Thursday morning, Nvidia indicates that Washington has finally approved the exchange necessary for the development of its H100 graphics cards.
The American authorities have also agreed that the company will deliver the A100s required by its American customers by April 1stah March 2023.
They also authorized Nvidia to continue shipping A100 and H100 orders to customers outside of China through its Hong Kong office by June 1ah Sep 2023.
“We are working with our customers in China to satisfy their planned or future purchases of alternative products and may request new licenses if replacements are not sufficient,” an Nvidia spokesman told AFP in a statement.
The US Department of Commerce had not responded to AFP’s request as of Thursday afternoon.