Nvidia instructed cloud computing clients to sell at least 51% of services outside China
Nvidia told cloud and data-centre clients to sell at least 51% of their services to companies outside China, the Financial Times reported, citing people familiar with the matter. The instruction was relayed verbally, applies globally and covers future contracts only; existing leasing agreements remain unchanged. Nvidia said infrastructure built on American chips underpins American model and application makers’ competition worldwide.
More context
Nvidia has instructed cloud computing and data-centre clients to ensure at least 51% of their services are sold to companies outside China, according to a Financial Times report citing people familiar with the matter. The instruction was delivered verbally by Nvidia’s sales and regional teams, rather than in writing, the report said. The Times of India, also citing the FT, reported that the rule applies to Nvidia clients globally and covers future contracts only; existing leasing agreements remain unchanged. Nvidia said data centres and clouds built on American chips support American model and application makers competing worldwide, and that long-standing US policy supports building American infrastructure abroad. Reuters said it could not immediately verify the report.
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Reporting
- The Standard (Hong Kong) — Nvidia orders data centre clients to reduce China exposure, FT reports
- Bloomberg — Nvidia Tells Data Center Clients to Trim China Business, FT Says - Bloomberg
- The Times of India — Nvidia tells data centre clients to sell majority of services to non-Chinese buyers; company says: 'Datacenters and clouds built on American chips are the foundation...' - The Times of India
- Financial Times — Nvidia orders data centre clients to reduce China exposure
- fourweekmba.com — Nvidia Tells Data Centre Clients to Cut Their China Exposure - FourWeekMBA
- startupfortune.com — Nvidia tells cloud clients to cap China business at 49% of their services - Startup Fortune
Verifier’s note
The Financial Times reports that Nvidia told data-centre clients to reduce their exposure to Chinese customers, including by directing them to sell a majority of services outside China. FourWeekMBA, The Standard, Bloomberg, Startup Fortune, and The Times of India also report the claim but attribute it to the Financial Times.