The American company NVIDIA has once again expressed its concerns about the financial risks faced by chip manufacturers due to sanctions aimed at the Chinese market. NVIDIA’s financial director, Koliett Korus, had previously voiced these fears in June and called for a tightening of export policies.
During an online conference, Korus emphasized that while the company’s budget will not be immediately affected by additional export restrictions on its microcircuits for data centers, she warned that the American industry will eventually lose its competitive edge and leading position in one of the world’s largest markets.
China is a significant buyer for NVIDIA, with revenues from cooperation with Chinese data centers accounting for 20% to 25% of their total revenue. Over the years, trade relations with China have seen a remarkable 171% increase and reached a record-breaking $10.32 billion in the first quarter of this year.
In response to the new laws, NVIDIA has recently released modified A800 and H800 chips, which are commonly used in the field of artificial intelligence, including for training AI models like ChatGPT on a large scale.
The US authorities justify the sanctions by expressing their concerns about contributing to the development of Chinese military technologies.
Despite the ongoing geopolitical tensions, NVIDIA’s financial situation remains stable for now, with the company’s shares experiencing a remarkable increase of over 220% this year.