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Restrictions on AI Chip Sales to Middle Eastern Countries – Impact on AMD and Nvidia Revenue

Jakarta

The US government is adding to the list of countries prohibited from buying high-end AI chips from AMD and Nvidia, accompanying China, which was on the list from the start, namely a number of Middle Eastern countries.

The reason for this restriction is because many buyers from these Middle Eastern countries are reselling AI chips from AMD and Nvidia to China, quoted detikINET from Techspot, Monday (4/9/2023).

According to Nvidia, the US government has informed them of these restrictions, namely the licenses required to sell the A100 and H100 GPU chips to consumers in certain countries, including a number of Middle Eastern countries.

It is not clear which country is meant. But what is clear is that Nvidia believes that these restrictions will not have a major impact on its income.

Meanwhile, a source also said that AMD received a letter containing information on similar restrictions. AMD also has a similar answer, that is, these restrictions have no impact on revenue.

As previously known, in 2022 the US tightened its sanctions against China. Namely by prohibiting AMD and Nvidia from selling their high-end GPUs specifically for AI to China and Russia.

That is so that the AI ​​flagship chip is used for military purposes and used in supercomputers in that country. But Nvidia is no less resourceful, they released the A800 chip which went into production in Q3 2022 as an alternative to the A100 (the US only banned sales of the A100 and H100 chips), which has an interconnect speed of 400GB/s, down from 600GB/s in the A100.

China is no less cunning and is still able to buy up A100 and H100 chips through the illicit trade, although at much higher prices (can be up to twice as much) and without a guarantee.

It is this trick that China might want to overcome by banning sales of the A100 and H100 to Middle Eastern countries.

Previously it was also reported that Saudi Arabia and the United Arab Emirates bought up thousands of Nvidia chips such as the H100 to become the market leader in the AI ​​industry. Saudi Arabia, for example, has purchased at least 3,000 Nvidia H100 units.

Watch Video “Many Enthusiasts After Using AI, Nvidia Immediately Gets Big Profits”

(asj/fay)

2023-09-04 15:11:45
#Middle #Eastern #Countries #Prohibited #Buying #Nvidia #Chips

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