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The relationship between the United States and China continues to fracture more and more and this time the impact has been felt in 2 of the leading companies in the computing sector, Nvidia and AMD, which will have to stop doing certain business with the Asian country by order of the American authorities.
US orders Nvidia and AMD not to sell high-tech GPUs to China
According to information from ReutersThis week Nvidia and AMD received a communication from the US government in which they were required to suspend the sale of advanced technology GPU units for the Chinese market. This means that powerful hardware, superior to that commonly used in PCs and functional with artificial intelligence technology, such as Nvidia’s A100 and H100 and AMD’s MI250, cannot be included in the commercial deals with China by the 2 company.
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This decision takes place amid the escalation of tension between the two nations due to US support for the independence of Taiwan, which by the way is the capital manufacturer of chips and maintains a very important business relationship with Nvidia and AMD.
According to the information provided by both companies, the US government argued that this suspension of sales, which seems more like a technological ban and blockade, is due to national security issues because they do not want China to have access to this type of technology for the high potential it has to lean towards military use.
After confirming the news, the shares of Nvidia and AMD went down with both companies pointing out the impact of this decision and the effects it will cause in their commercial relations with the Asian country.
Since we are talking about China, it was recently confirmed that the video game industry in that country was down due to the restrictions imposed by its government. First, the income generated by the sector fell for the first time in a decade. Later, a report revealed that Chinese children are turning away from gaming due to guidelines that restrict their allowed time to play.
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