Nvidia and AMD are warning about new US export limits to Russia and China on AI chips

The U.S. has begun to impose fresh restrictions on exports of advanced chips necessary for AI-related applications to Russia and China. 

Sales of the semiconductors that power systems sold by AMD and Nvidia without a license are affected. The controls affect AMD's competing product, the MI200. The move could affect Nvidia's sales in China, which could affect as much as $400 million in quarterly sales. AMD does not believe the restrictions would have a material effect on its revenue.

Nvidia announced on Wednesday that it had received notification from the US government that new licensing requirements affecting sales of its advanced line of server GPUs to Russia or China are being enforced. AMD confirmed receiving a similar letter from the US for their series of GPUs designed for AI-related work.

According to Nvidia's declaration, the new export limitations are intended at performance levels closely connected with Nvidia A100 processors — the current generation of chips deployed in the field — rather than specific chips. The controls have an impact on AMD's competing product, the MI200.

The admission on Wednesday is yet another indication that the United States is changing its attitude toward China and its ability to develop and employ sophisticated electronics. Under the Biden administration, the U.S. Commerce Department has implemented a new rule that could block the export of chip design software that’s necessary to build the next generation of chips. Part of the administration's thinking centres around its plan to restrict access to AI-related technology.

The administration also intends to stymie China's capacity to produce semiconductors using the current generation of FinFETs known as "fin field-effect transistors" by restricting access to the required equipment to make such devices. FinFET designs have been used for many years and may now be found in the latest smartphone and server processors.