Nvidia Tells Cloud Clients to Reduce Chinese Business: FT
Nvidia has reportedly told its cloud computing customers to sell at least 51% of their services to non-Chinese companies, potentially narrowing Chinese technology groups’ access to advanced AI computing overseas.
The Financial Times reported on Tuesday that the requirement applies to future contracts and leaves existing agreements unaffected, citing five people familiar with the matter.
Nvidia’s sales staff and regional teams communicated the instructions verbally rather than through written guidance, the FT reported. The requirements extend to customers worldwide, including those outside Asia.
The reported restrictions would affect a different part of the AI supply chain from direct chip sales: cloud providers that buy processors and rent computing capacity to other businesses. Such services allow developers to train and operate AI systems without owning the underlying hardware.
For providers heavily dependent on Chinese customers, the requirement could mean finding additional business elsewhere before expanding those relationships. Its effect would depend on their existing customer mix and how Nvidia measures compliance.
The distinction between new and existing contracts also matters. Preserving signed agreements could limit the immediate disruption while constraining future access as customers seek additional capacity.
The reported threshold still allows business with Chinese companies. Its significance lies in requiring non-Chinese buyers to account for a majority of services, potentially reshaping where cloud operators seek growth.
