Nvidia’s New China Pickle: Customers Don’t Want Its Downgraded Chips

Published on January 7, 2024



Chinese buyers are pushing back against lower-powered AI chips it hopes to sell them in response to U.S. export curbs.

SINGAPORE—After U.S. regulations barred Nvidia NVDA 2.29%increase; green up pointing triangle from selling its high-performance artificial-intelligence chips to China in October, the company’s engineers quickly designed a new lineup to comply with the tightened rules.

The U.S. tech company may have found some wiggle room, but it faces a bigger problem: Chinese cloud companies—some of Nvidia’s biggest customers globally—aren’t so keen on buying its lower-powered AI chips.

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