WORLDTECHNvidia asks cloud customers to limit business with Chinese companies
Nvidia has reportedly told some of its cloud customers to accept less work from Chinese companies, according to The Decoder. The guidance is meant to change who ends up using chips rented through cloud providers.
What the guidance asks for
According to the report, Nvidia has advised some cloud customers to scale back the share of their work tied to Chinese firms. Those customers are also being asked to identify the individuals who actually access the chips.
The directive carries no mandatory force and covers only contracts signed from here on, leaving agreements already in place unaffected.
Aim to broaden the customer base
The guidance is intended to push cloud providers, including neoclouds backed by Nvidia, toward a more varied customer mix, The Information reports, citing three people familiar with the matter.
The step targets a gap in U.S. export controls, namely how chips can reach Chinese users through cloud services rather than direct sales.
Open questions
- How many cloud customers have received the guidance?
- Will Nvidia enforce the end-user disclosure requirement?