NVIDIA Might be Forced to Cancel US$5 Billion Worth of Orders from China

[TheLostSwede]

The U.S. Commerce Department seems to have thrown a big spanner into the NVIDIA machinery, by informing the company that some US$5 billion worth of AI chip orders for China falls under the latest US export restrictions. The orders are said to have been heading for Alibaba, ByteDance and Baidu, as well as possibly other major tech companies in China. This made NVIDIA's shares drop sharply when the market opened in the US earlier today, by close to five percent, dropping NVIDIA's market cap below the US$1 Trillion mark. The share price recovered somewhat in the afternoon, putting NVIDIA back in the trillion dollar club.

Based on a statement to Reuters, NVIDIA doesn't seem overly concerned, despite what appears to be huge loss in sales, with a company spokesperson issuing the following statement "These new export controls will not have a meaningful impact in the near term". The US government will implement these new export restrictions from November, which obviously didn't give NVIDIA much of a chance to avoid them and it looks as if the company is going to have to find new customers for the AI chips. Considering the current demand for NVIDIA's chips, this might not be too much of a challenge for the company though.



View at TechPowerUp Main Site | Source

 

[ZoneDymo]

Im sure they will find a way.

 

[Double-Click]

Im sure they will find a way.

With how minimal the fines Seagate were slapped with I'm sure they will.
Who knows maybe Uncle Sam would take greater offense to it though being related to AI rather than just storage.

 

[rv8000]

Oof, one less leather jacket for Christmas. I bet that’ll really ruin Jensen’s year!

 

[Denver]

It doesn't seem like a smart tactic to me, they are sabotaging American companies, which in turn will have less money to continue investing in innovation.

 

[evernessince]

It doesn't seem like a smart tactic to me, they are sabotaging American companies, which in turn will have less money to continue investing in innovation.

China accounts for less than 4% of the market so no, as Nvidia said they it won't have an impact. The still have a huge backlog so it just means the cards that would have went to China go somewhere else.

 

[TumbleGeorge]

It doesn't seem like a smart tactic to me, they are sabotaging American companies, which in turn will have less money to continue investing in innovation.

This cartoon is so clever.

 

[_JP_]

Im sure they will find a way.

Another container will be "lost".

 

[FreedomEclipse]

China accounts for less than 4% of the market so no, as Nvidia said they it won't have an impact.

I dont know where you get the 4% from but I know for a fact that that figure is probably a lie. Jensen might say it wont have an impact but he is trying to re-assure shareholders and investors to stop them pulling their money out.


In any case, If China really really wanted something. They will find ways to get it. There are 3rd parties who are willing to smuggle things to them if the price is right.

 

[FoulOnWhite]

crazy world

I'd rather live in China then the US, no doubt.

 

[chodaboy19]

crazy world

I'd rather live in China then the US, no doubt.

You forgot the /s

 

[evernessince]

I dont know where you get the 4% from but I know for a fact that that figure is probably a lie. Jensen might say it wont have an impact but he is trying to re-assure shareholders and investors to stop them pulling their money out.


In any case, If China really really wanted something. They will find ways to get it. There are 3rd parties who are willing to smuggle things to them if the price is right.

It should go without saying, perhaps don't call something a lie without looking it up? That's just rude.

Infographic: U.S. and China Dominate the Data Center Market

This chart shows the countries with the largest revenue generated by the data center market in 2023.

www.statista.com

 

[TechLurker]

crazy world

I'd rather live in China then the US, no doubt.

I hope you're ready to ass kiss everyone in power above you in order to keep your Social Credit scores up and your taxes and lending rates low, as well as post praise for the government when they flood your living area to save the living areas of the governors and political elite.

 

[kondamin]

That's a 5 billion in orders what is that 3 4080's and a 4090?

 

[FreedomEclipse]

It should go without saying, perhaps don't call something a lie without looking it up? That's just rude.

View attachment 319748

Infographic: U.S. and China Dominate the Data Center Market

This chart shows the countries with the largest revenue generated by the data center market in 2023.

www.statista.com

"Based off estimates..."

They are pulling figures out of thin air and im sure China has a lot more data centers

 

[lexluthermiester]

The U.S. Commerce Department seems to have thrown a big spanner into the NVIDIA machinery, by informing the company that some US$5 billion worth of AI chip orders for China falls under the latest US export restrictions.

I hate to say this, but really, boo-hoo. The tiny violins are playing...

NVidia will have to lower prices to sell through that inventory. Less profit, but no losses.

 

[R0H1T]

It should go without saying, perhaps don't call something a lie without looking it up? That's just rude.

No way China has less DC's than Germany, sure probably less than the US but not any other nation apart from that!

 

[GunShot]

And how long did NVIDIA, ect. knew about the ongoing trade fued between the the US and China again? Not just in the Trump years but it started in the Obama's (technically Bush) administration that brought serious evidence against China's IP violations, ect. But, hey, let's ignore all those HUGE warnings and turn the notch up for more profit, right NVIDIA?

Just more evidence that NVIDIA is NOT an American company (being founded in a territory is not the same as established roots) and has NO American, and its people, interest, first.

 

[evernessince]

"Based off estimates..."

View attachment 319762

Of course the data is based on estimates, most statistics on the national and particularly international scale are estimates due to the enormous amount of capital it would take to get a hard count and the lack of an ability of the entity collecting data for a statistic to compel governments / companies in every country to provide information on assets to a 3rd party. The US Census cost the US 14.4 billion USD to conduct in 2020 and that's considering that the US government has the right to compel citizens to comply and only a single country.

They are pulling figures out of thin air and im sure China has a lot more data centers

They lay out how they get their numbers on the methodology page. I don't see how your feelings make a stronger case than their statistic.

No way China has DC's than Germany, sure probably less than the US but not any other nation apart from that!

According to the statistic Germany is number 2 right behind the US.

 

[boomstik360]

NVDA Puts be printinggggg

 

[R0H1T]

According to the statistic Germany is number 2 right behind the US.

And how did they come to that conclusion, just estimates right? Like this alone would dwarf probably anything from Germany ~

China has started ranking citizens with a creepy 'social credit' system - here's what you can do wrong, and the embarrassing, demeaning ways they can punish you

REUTERS/StringerAn internet cafe in Wuhan, China.The Chinese state is setting up a vast ranking system system that will monitor the behaviour of its enormous

www.businessinsider.in

 

[TumbleGeorge]

Number of cabinets in chinese data centres per year. In millons. Expectations to end of 2023 are for "It is expected that the number of data center cabinets in China will reach 7.76 million in 2023" (sorry non human translation).
The number of facilities is not always important. There might be a data center in China with a hundred times more cabinets than the average American data center. Nvidia in trouble.

 

[stimpy88]

I hope nGreedia get caught selling hardware to China. I'd effin laugh my ass off. Anything to make a buck, aye Jensen!

 

[Assimilator]

Given how genAI companies in the US are openly talking about how they're looking to manufacture custom AI hardware because they can't get enough NVIDIA GPUs, this really isn't going to make one iota of difference to team green's bottom line. If anything NVIDIA will probably be able to sell the GPUs that were destined for China to those US companies, for more money.

Also all of you idiots saying that NVIDIA will ignore export restriction controls over this, are just that - idiots. NVIDIA is greedy, not stupid, and they don't need to break any laws when their products are in such high demand. Understand the basics of economic supply and demand before you make stupid comments that show how uneducated you are, FFS.

 

[Denver]

It should go without saying, perhaps don't call something a lie without looking it up? That's just rude.

View attachment 319748

Infographic: U.S. and China Dominate the Data Center Market

This chart shows the countries with the largest revenue generated by the data center market in 2023.

www.statista.com

This is the data center market, not AI. Once Chinese companies wanted to compete with Western companies, they would certainly invest in the order of tens to hundreds of billions.

And no, that's not funny.