US orders Nvidia to halt sale of $400M worth of GPUs to China

On Wednesday, US officials ordered Nvidia to halt sales of two of its chips to China. Nvidia told Reuters that US officials claim this new rule "Will address the risk that products may be used in, or diverted to, a 'military end use' or 'military end user' in China." According to the SEC filings, Nvidia stands to lose $400 million in sales from the two chips being banned, potentially hurting China's advanced computing capabilities for civilian and military applications. "We are working with our customers in China to satisfy their planned or future purchases with alternative products and may seek licenses where replacements aren't sufficient," an Nvidia representative told me. Nvidia will be applying for a license to continue some exports to China, but hasn't said if it expects the US will grant the exemption. This isn't the first time the US has stopped chipmakers from selling to China. Regardless, these new bans won't help the already tense relationship between the US and China.