China has ordered local firms to stop purchasing AI chips from Nvidia, a move that could significantly impact Nvidia's finances in the coming months.
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Former reports about the US officials requesting Nvidia to include a backdoor in its products may be accurate.
The US export restrictions have paved the way for domestic Chinese chipmakers to gain a greater foothold in the country's AI chip market.
China appears to have sought access to Nvidia products for military AI applications and the development of a robot dog.
NVIDIA has delayed the launch of its H20 AI chip in China due to integration issues manufacturers are facing with the new chip. The H20 is the most powerful compliance chip designed for China.