US authorities have notified federal agencies that the largest chip maker, Nvidia, will not supply its B30A model to China.
This happened after the tech giant provided chip samples to several Chinese companies seeking to use them in data centers for artificial intelligence. China viewed the B30A chips as a workaround after the use of more powerful chips was restricted. The US decision completely blocks these capabilities.
Interestingly, Beijing previously introduced new regulations requiring all state-owned data centers to use only locally produced processors. This will force companies to dismantle any existing foreign-made chips and abandon plans to purchase them.
The US government’s announcement came on a day when US markets reacted negatively to quarterly earnings reports, with the S&P 500 falling 1,1%, the Dow Jones Industrial Average down 421 points, or 0,9%, and the Nasdaq losing 1,8%.
Large tech companies weighed on the overall market due to their high weighting in the index. Nvidia shares fell a whopping 4,2%, Microsoft by 1,9%, and Amazon by 2,4%.