Despite U.S. limitations on the shipment of two of its top processors to China, Nvidia Corp. (NVDA.O) Chief Executive Jensen Huang stated on Wednesday that he still sees a sizable market for Nvidia’s data center chips in the country.
Huang stated that the limitations revealed earlier this month have defined thresholds for both the performance of a chip and the processor’s capacity to connect additional chips during a press conference following the company’s fall product launch.
According to him, there is “a tremendous opening for us” in the Chinese market due to the laws. The vast majority of our clients, according to Huang, are unaffected by the standard. “Our hope is that we will have a considerable number of devices that are physically suitable, that are inside the limitations, and that needs no license at all, both for the United States and also for China,” the statement continues.
Nvidia announced on September 1 that the U.S. government has instructed it to halt exporting its A100 and H100 chips to China, which could have a negative impact on the company’s revenues by up to $400 million in the current fiscal quarter. The two devices, which are used in data centers to accelerate artificial intelligence activities like natural language processing, are Nvidia’s two fastest CPUs.
“You might infer that the intention is not to lessen or harm our business. Knowing who would require capabilities over this threshold will allow the United States to decide whether to make that level of technology accessible to others or not “said Huang.