U.S. export controls might force Nvidia (NASDAQ:NVDA) to cancel several billion-dollar chip orders for China, as reported by the Wall Street Journal. This decision could significantly impact Chinese tech firms by depriving them of essential AI components.
Nvidia had already fulfilled this year’s AI chip deliveries to China and was looking to expedite some 2024 shipments ahead of the new regulations set for mid-November. However, the U.S. government stated in a letter that the restrictions on high-end chip exports, encompassing sales to China, were immediate.
Major Chinese tech giants like Alibaba Group, ByteDance (TikTok’s parent company), and Baidu had already placed significant orders for the coming year. According to the WSJ, these 2024 orders surpassed $5 billion.