NVIDIA to Lose Two Major HPC Partners in China, Focuses on Complying with Export Control Rules

[AleksandarK]

NVIDIA's presence in high-performance computing has steadily increased, with various workloads benefiting from the company's AI and HPC accelerator GPUs. One of the important markets for the company is China, and export regulations are about to complicate NVIDIA's business dealing with the country. NVIDIA's major partners in the Asia Pacific region are Inspur and Huawei, which make servers powered by A100 and H100 GPU solutions. Amid the latest Biden Administration complications, the US is considering limiting more export of US-designed goods to Chinese entities. Back in 2019, the US blacklisted Huawei and restricted the sales of the latest GPU hardware to the company. Last week, the Biden Administration also blacklisted Inspur, the world's third-largest server maker.

In the Morgan Stanley conference, NVIDIA's Chief Financial Officer Colette Cress noted that: "Inspur is a partner for us, when we indicate a partner, they are helping us stand up computing for the end customers. As we work forward, we will probably be working with other partners, for them to stand-up compute within the Asia-Pac region or even other parts of the world. But again, our most important focus is focusing on the law and making sure that we follow export controls very closely. So in this case, we will look in terms of other partners to help us." This indicates that NVIDIA will lose millions of dollars in revenue due to the inability to sell its GPUs to partners like Inspur. As the company stated, complying with the export regulations is the most crucial focus.



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[ZoneDymo]

I'm going to assume English is not NVIDIA's Chief Financial Officer's first language.

 

[clopezi]

It's naif thinking that this movement will not turn against western in the long term. In a few years, maybe a decade, a big chinese competitor will face up with similar technology for his local market and will be again a big rival to western companies. It's only a short term measure...

 

[GunShot]

So, IOW, "we just can't deliver our product(s) to China... openly" right?

Another future Huawei and NK, etc. transaction/agreement?

 

[stimpy88]

nGreedia should not be allowed to sell to China.

 

[AnarchoPrimitiv]

It's naif thinking that this movement will not turn against western in the long term. In a few years, maybe a decade, a big chinese competitor will face up with similar technology for his local market and will be again a big rival to western companies. It's only a short term measure...

You mean: someday a big Chinese company will steal the correct IP that will inatantly make them a competitor....

As for Nvidia....I'm sure they'll be fine without providing GPUs to the PLA and the PRC so they can track every minute behavior of every potential dissident's thought crimes

 

[Flanker]

There are Chinese companies making AI accelerator chips atm, but the performance is apparently god awful that their clients had better success using GeForce cards

 

[Vayra86]

It's naif thinking that this movement will not turn against western in the long term. In a few years, maybe a decade, a big chinese competitor will face up with similar technology for his local market and will be again a big rival to western companies. It's only a short term measure...

There is a saying.

'Time is money'

There are Chinese companies making AI accelerator chips atm, but the performance is apparently god awful that their clients had better success using GeForce cards

The Chinese also apparently have a working quantum computer and 7nm EUV process. They also 'cured Covid' within a month lately. Its amazing, what happens when Xi dominates the entire gov apparatus. I hear they're solving climate change come April, and World Peace is an ongoing topic too, in close cooperation with Russia.

I'm going to assume English is not NVIDIA's Chief Financial Officer's first language.

They're looking at working with language in terms of stand-up comedy

 

[TheoneandonlyMrK]

I thought Nvidia were just reflashing lower clock limits in a way that can't be defeated like LHR to get around this??

 

[LupintheIII]

I thought Nvidia were just reflashing lower clock limits in a way that can't be defeated like LHR to get around this??

If "it can't be defeated" the same way of LHR I see why the U.S. decided for an hard ban.

 

[Minus Infinity]

How is that a US company was still allowed to work with Huawei. Huang is probably a Chinese agent.