The White House has notified other federal agencies that it will not allow Nvidia to sell its newest reduced AI chips to China, according to reports.

Nvidia has given samples of the chip to multiple Chinese clients. The chip referred to as the B30A can be employed to train extensive language models when effectively organized in sizable clusters, a feature needed by numerous Chinese firms, the report noted.

The B30A chip can be employed to train extensive language models when organized efficiently in large clusters, a necessity for numerous Chinese firms, the report noted.

A spokesperson for Nvidia informed Reuters that the firm holds "no share in China's fiercely competitive datacenter compute market and does not factor it into our guidance."

Nvidia is attempting to alter the B30A's design in the hope that the U.S. government will revise its position, according to a report from The Information, which quoted two employees of the company.

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The company based in California has been encountering regulatory challenges in China as well.

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Beijing has recently released guidance mandating that all new data center projects receiving state funding must utilize only domestically produced chips, as per reports.

Data centers that are under 30 percent finished must eliminate all foreign chips that have been installed or halt any purchase plans for them, while those projects that are further along will be assessed individually, according to reports.

 

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The regulations effectively exclude Nvidia and its AI chips from a profitable market segment, including sophisticated models subject to US export controls that are still accessible in China through grey market avenues.