Wednesday, August 31st 2022
U.S. Government Restricts Export of AI Compute GPUs to China and Russia (Affects NVIDIA, AMD, and Others)
The U.S. Government has imposed restrictions on the export of AI compute GPUs to China and Russia without Government-authorization in the form of a waiver or a license. This impacts sales of products such as the NVIDIA A100, H100; AMD Instinct MI100, MI200; and the upcoming Intel "Ponte Vecchio," among others. The restrictions came to light when NVIDIA on Wednesday disclosed that it has received a Government notification about licensing requirements for export of its AI compute GPUs to Russia and China.
The notification doesn't specify the A100 and H100 by name, but defines AI inference performance thresholds to meet the licensing requirements. The Government wouldn't single out NVIDIA, and so competing products such as the AMD MI200 and the upcoming Intel Xe-HP "Ponte Vecchio" would fall within these restrictions. For NVIDIA, this is impacts $400 million in TAM, unless the Government licenses specific Russian and Chinese customers to purchase these GPUs from NVIDIA. Such trade restrictions usually come with riders to prevent resale or transshipment by companies outside the restricted region (eg: a distributor in a third waived country importing these chips in bulk and reselling them to these countries).
Source:
Protocol
The notification doesn't specify the A100 and H100 by name, but defines AI inference performance thresholds to meet the licensing requirements. The Government wouldn't single out NVIDIA, and so competing products such as the AMD MI200 and the upcoming Intel Xe-HP "Ponte Vecchio" would fall within these restrictions. For NVIDIA, this is impacts $400 million in TAM, unless the Government licenses specific Russian and Chinese customers to purchase these GPUs from NVIDIA. Such trade restrictions usually come with riders to prevent resale or transshipment by companies outside the restricted region (eg: a distributor in a third waived country importing these chips in bulk and reselling them to these countries).
23 Comments on U.S. Government Restricts Export of AI Compute GPUs to China and Russia (Affects NVIDIA, AMD, and Others)
I guess CPUs will follow.
asia.nikkei.com/Business/Tech/Semiconductors/Red-hot-Chinese-chip-investment-fuels-boom-in-used-equipment
China, and Russia, has stated many of times that they will stop utilising the USs software and hardware (Window's PCs, etc.) by ~2025. I guess China's, etc. bluff has been called out now and their 2025 high-praise dependency came a few years too early unexpectedly.
Can't believe they were selling to backwards autocrats anyway.
It's like sponsoring your own retirement tyranny, f that.
On the bright side China is improving rapidly, in 5/10 years they could achieve parity, so we are less at the mercy of politics.
It is said from analysts, according to estimations, that Nvidia had $3.2 billion revenue in 2020 from AI datacenter business while the global market for AI accelerators was around $4 billion and the forecast was that the market is going to double per 2year cycle at least until 2026, so maybe 2022 or 2023 TAM $8 billion with Nvidia if it retains the 80% share 6.4billion prospect, so global Nvidia market up to $6.4 billion and China only $400 million?