What happened
Citing five people familiar with the matter, the Financial Times reported that Nvidia has instructed its data centre partners to limit business with Chinese customers. Cloud computing providers are required to sell at least 51% of their services to non-Chinese companies.
Scope
The rule applies to new contracts only; existing agreements are unaffected. The report does not give an official reason for the move.
Why it matters
Nvidia is the largest supplier of AI chips. Indirectly limiting sales to China shows how US export controls are filtering into companies' commercial policies. For cloud providers, this may require extra planning when taking on new Chinese customers.
Open questions
The story rests on a single outlet and unnamed sources. There has been no confirmation from Nvidia or its cloud partners, and it is unclear when the rule took effect or how it will be enforced.
