Nvidia faces revenue threat from new U.S. AI chip export curbs, analysts say

[Kaz]

 

  Quote

Nvidia (NVDA.O) faces a significant revenue threat due to the latest U.S. export restrictions on artificial intelligence chips, designed to limit the global distribution of these coveted processors, analysts and investors said on Monday.

The regulations, among the strongest yet from the Biden administration, limit AI chip exports to most countries except for a select group of close U.S. allies.

They also maintain a block on exports to some countries, including China, as the U.S. tries to close regulatory loopholes and prevent Beijing from acquiring advanced chips that could bolster its military capabilities.

 

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reuters.com

WWW.REUTERS.COM

 

This is just the latest round where the U.S. says they are going to be the AI leaders of the world.  They limit what Nvidia can sell, so Nvidia builds right up to the line for specs that they can sell and the U.S. says, wait we don't want them to have that either!  I'm certain at this point it's cost Nvidia a significant amount of money, but most certainly China is already doing their best to circumvent it.  Most notably they are starting to develop their own hardware, which may not be as good, but is probably 'good enough'.  AI is more dependent on it's training data than the hardware it runs on.

 

This is no different than open source vs closed source.  I'm happily in the open source crowd and I don't think limiting competition is a good thing.  From Nvidia's perspective limiting their market is certainly worse, as they would have used that money that is instead going to competition.  It's the same problem as Google pulling out of China's market.  They are still going to have operating systems for their phone, it just won't be under western influence.

 

I guess China could try and copy the hardware, but the Linux community knows, it's the drivers that matter!  I can't help but think it's only a matter of time until things change, but my friends who have been to China have told me that Chinese citizens are not taught to think, they are taught to copy.  It may be a while until that mindset changes. 

Edited January 21 by Kaz
Fixed formating.

[bonami2]

  On 21/01/2025 at 23:03, Kaz said:

 

reuters.com

WWW.REUTERS.COM

 

This is just the latest round where the U.S. says they are going to be the AI leaders of the world.  They limit what Nvidia can sell, so Nvidia builds right up to the line for specs that they can sell and the U.S. says, wait we don't want them to have that either!  I'm certain at this point it's cost Nvidia a significant amount of money, but most certainly China is already doing their best to circumvent it.  Most notably they are starting to develop their own hardware, which may not be as good, but is probably 'good enough'.  AI is more dependent on it's training data than the hardware it runs on.

 

This is no different than open source vs closed source.  I'm happily in the open source crowd and I don't think limiting competition is a good thing.  From Nvidia's perspective limiting their market is certainly worse, as they would have used that money that is instead going to competition.  It's the same problem as Google pulling out of China's market.  They are still going to have operating systems for their phone, it just won't be under western influence.

 

I guess China could try and copy the hardware, but the Linux community knows, it's the drivers that matter!  I can't help but think it's only a matter of time until things change, but my friends who have been to China have told me that Chinese citizens are not taught to think, they are taught to copy.  It may be a while until that mindset changes. 

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The 25% tarif will also drop their sale to Canada i would think.

It getting a bit crazy am starting to wonder if a big recession not coming.

 

I added the Nvidia tag to the post. I also forget often to put them

Great work i need to catchup you and Lab are posting faster than i can keep up with the news!