This morning, ShanghaiMacro on Twitter showed a document that showed that the US was suspending all GPU shipments from NVIDIA & AMD, such as the A100 and H100 to China and Russia. It was considered a rumor then, but Reuters confirmed that the U.S. government had created a new license requirement for those affected integrated circuits a few hours ago.
The tweet below from Shanghai Macro Strategist (@ShanghaiMacro on Twitter), shows a document that mentions NVIDIA's H100 & A100 Data Center GPUs.
It is rumored that AMD and NVIDIA have been asked by the US government to stop supplying GPU to their Chinese clients. pic.twitter.com/7j0ELtiB2f
— Shanghai Macro Strategist (@ShanghaiMacro) August 31, 2022
The document was machine translated for those unable to understand the document, which is posted below.
AMD informed that it has received an urgent notice from the headquarters:
1. Suspend the shipment of all data center GPU cards MI100 and MI200 in China,
2. Count the shipments of MI100 in China,
3. Count the list of customers who have shipped MI200 in China and [...] Goods
[...] AMD Analysis may be that the US government wants to restrict the sales of high-performance GPU cards in China, especially the double-precision high-performance cards for Chinese HPC.
NVIDIA's latest information this afternoon:
1. NVIDIA China has received a request from the headquarters: suspend the shipment of data center GPU cards A100 and H100 to all customers and agents in China, and other GPU cards will not be affected,
2. The existing stock A100 GPU cards of each server OEM can continue to be delivered to their respective industry customers, and NVIDIA China has not issues any OEMs at present.
3. NVIDIA headquarters is still analysing the policy requirements of the US government, and it is expected that it will take 2~3 days to communicate with customers and partners in China.
A few hours ago, Twitter account Stock Talk Weekly (@stocktalkweekly on Twitter) confirmed (via Reuters) that the U.S. government has issued a license requirement to halt future exports of A100 and H11 integrated circuits to both China and Russia.
Breaking: The U.S. government has imposed a new license requirement, effective immediately, for any future exports of A100 and H11 integrated circuits to China and Russia, according to Reuters $NVDA
— Stock Talk Weekly (@stocktalkweekly) August 31, 2022
The affected products for NVIDIA cover the company's Tensor Core GPUs (A100 and next-gen H100 chips) that power data centers with artificial intelligence (AI) and high-performance computing (HPC). Affected areas of computing would be cloud computing, data centers, and those areas where AI is necessary, including scientific and technological advancements. NVIDIA received the notification on August 26th from the U.S. government
The NVIDIA stock ($NVDA) dropped as much as 5.1% in late trading, equaling around $400 million in sales for the company and 6.8% of revenue in the third fiscal quarter.
AMD has also received new license requirements that will stop it from selling MI250 GPUs but the company can still continue shipments of its older MI100 GPUs. The AMD Instinct MI100 chips are also used in research computing as a learning accelerator. The upcoming Frontier supercomputer is powered by AMD's MI200 and EPYC chips.
Before today's ruling, China has worked towards creating alternatives to various technology and advancements that the country has depended on from the two companies. This move from the country would make them self-reliant and less dependent on the United States for components. At the same time, companies in the U.S. have felt scrutiny from the government in each company's dealings with China, as the government sees the country as a growing security risk.
News Sources: ShanfhaiMacro on Twitter, Stock Talk Weekly on Twitter
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