Washington: The United States government has decided to prevent Nvidia from exporting its scaled-down artificial intelligence (AI) chips to China, expanding its restrictions on technology exports amid rising competition with Beijing. The decision reflects Washington’s determination to curb China’s access to advanced computing tools that could be used for military or strategic purposes.
Officials have reportedly informed Nvidia that its upcoming B30A AI chip cannot be sold to Chinese customers. Although the B30A was designed to comply with earlier export control rules, authorities concluded that even this limited version could be used to train large AI models if connected in clusters, posing a national security risk.
Nvidia had already shared samples of the chip with some clients in China, but the company now faces a complete halt on further shipments. It has clarified that its data center business currently has no share in China and that its financial forecasts exclude revenue from the Chinese market.
The latest move follows earlier restrictions on Nvidia’s most powerful AI chips, including its Blackwell series, which were also banned from export to China. The new order shows that Washington is extending its control to less advanced versions, effectively tightening the limits on any AI technology capable of large-scale data processing.
China, meanwhile, has stepped up efforts to strengthen its domestic chip industry. The government has directed all new state-backed data centers to rely solely on locally made semiconductors. Projects still under construction have been told to replace any foreign components, part of a broader plan to reduce dependence on U.S. technology.
Experts say the U.S. decision is likely to deepen the technology divide between the world’s two largest economies. While the restrictions may slow China’s access to high-end computing power, they could also accelerate the country’s push to develop its own semiconductor capabilities.
For Nvidia, the decision is another setback in its attempts to maintain a presence in one of the largest potential markets for AI hardware. The company is said to be exploring ways to redesign the B30A to meet future export criteria, though it remains uncertain whether such changes would satisfy U.S. regulators.
The ongoing standoff between Washington and Beijing over technology exports is reshaping the global semiconductor landscape. With both nations prioritizing self-reliance and security, the divide in chip development and supply chains is expected to grow wider, raising new challenges for global technology firms.