Tech war: US sanctions on key Nvidia distributor in China could push more customers towards domestic replacements

Published on April 13, 2024

  • Sitonholy, which has been added to the US Entity List, is one of a few ‘elite-level’ Nvidia data centre product solutions providers in China
  • The company has also been distributing Huawei Technologies’ Ascend 910B AI chips, an alternative to Nvidia’s A100 GPUs

Chinese companies have lost access to one of the country’s largest distribution channels for Nvidia processors after the US added a major reseller to its export blacklist, strengthening Washington’s efforts to curb artificial intelligence (AI) development in China while pushing more Chinese businesses towards local replacements.

Sitonholy (Tianjin) was among four Chinese companies added to the US Entity List on Wednesday for allegedly helping China’s military acquire AI chips, according to a post published on the Federal Register.

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