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Nvidia Tells Cloud Clients to Sell at Least 51% of Services Outside China

Nvidia Corporation has directed its cloud computing and data center clients to ensure at least 51% of their services and computing capacity are sold to non-Chinese businesses, according to the Financial Times. The instruction was delivered verbally by regional sales teams, establishing distribution thresholds where none previously existed. The policy aims to prevent Chinese entities from indirectly leasing restricted advanced artificial intelligence computing power through foreign cloud providers. The move follows recent smuggling charges involving $2.5 billion of Nvidia hardware tied to server partner Super Micro employees as regulators scrutinize semiconductor export loopholes.

Category

NVIDIA

Sentiment

Neutral

Event

Regulation legal

Reading time

1 min