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Nvidia reportedly sets limits on cloud clients’ Chinese business

The Financial Times reported that non-Chinese companies must account for at least 51% of services sold under rules applying to future contracts.

Rows of server cabinets inside a data centre
Photo: The Edge Malaysia

Nvidia is requiring its data centre partners to reduce business with Chinese customers, according to a Financial Times (FT) report on Nov 3. The newspaper cited five people familiar with the matter as saying that non-Chinese companies must account for at least 51% of services sold by Nvidia’s cloud computing clients.

The requirements cover future contracts, leaving existing agreements unaffected, FT reported. Responding to AFP, Nvidia did not confirm or deny the reported restrictions.

Nvidia said US-built chip infrastructure underpins the ability of American AI model and application developers to compete globally. The company also said US policy has long encouraged cloud providers to use American infrastructure while pursuing customers worldwide. It argued that reliance on foreign chips would also lead to foreign-built models and applications.

Chinese Foreign Ministry spokeswoman Mao Ning said she had no knowledge of the report. She said China wanted companies of all nationalities, including Chinese businesses, to have access to a fair and transparent commercial environment without discrimination.

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