AI chip giant Nvidia may be Cat 3 moviesforced to cancel orders worth over $5 billion for advanced chips to be exported to China next year, due to expanded export restrictions imposed by the US government, The Wall Street Journal exclusively reported on Tuesday. The US Department of Commerce issued a series of new chip export restrictions on Oct. 17, broadening the definition of advanced AI chips. The new restrictions are set to take effect on Nov. 16. However, on Oct. 23, the US government requested Nvidia to immediately cease the export of high-end chips to China. A source mentioned that major Chinese AI and cloud computing companies, including Alibaba, ByteDance, and Baidu, have placed $5 billion orders with Nvidia for next year, which are expected to be canceled in accordance with the new policy. [The Wall Street Journal]
