The US government has restricted the export of chips used for supercomputers and artificial intelligence to China and Russia. Reuters writes about it.

Nvidia products were dropped under new license restrictions. The US Department of Commerce has notified the chipmaker that it has banned the shipment of A100 and H100 GPUs designed to accelerate machine learning tasks to Russia and China.

The government believes that the new requirements will avoid the risks of using these products for military purposes in any country.

“We take a holistic approach to implement the additional steps required for the technology. […] “To protect US national security and foreign policy interests,” the US Department of Commerce official said.

Nvidia acknowledged in a statement to the SEC that the restriction could prevent the H100 chip from being completed.

The tech giant expects to earn around $400 million from sales to Chinese companies in the third fiscal quarter of 2022. But Nvidia could lose potential revenue if its Chinese customers refuse to purchase alternative products or if the government doesn’t issue a license.

The company also reminded that product deliveries to Russia were suspended.

The restrictions have also affected AMD. The technology giant will not be able to export MI250 chips to China. However, the company does not believe this will have a major impact on their business.

Hours after the announcement, Nvidia shares fell 6.5%. AMD shares fell 3.7%.

Previously, the US Department of Commerce tightened export controls on chip technology to prevent Chinese manufacturers from using them.

Recall that in July Nvidia stopped selling and renewing software licenses in Russia.

In November 2021, US authorities blacklisted Chinese developers of quantum computer systems.

In July, the US Department of Commerce sanctioned 14 Chinese technology companies for human rights abuses against the Uyghur minority in Xinjiang.