A amazing twist in the global war on artificial intelligence. Although Washington unexpectedly opened the way to exporting powerful Nvidia H200 processors to your middle, Beijing put up a hard veto.
The Chinese customs have blocked deliveries, and Nvidia subcontractors are halting the production of components, which puts a billion-dollar order in question.
"Technology lenna" rejected
The situation is unprecedented. A fewer days ago, the Donald Trump administration announced that it would let the sale of advanced H200 accelerators to China, but under strict conditions. 1 of them was the US government's 25 percent share of gross from this sale – which experts rapidly christened as "technological lenna".
However, Beijing responded in the most acute way possible: he ordered the customs to halt the transports and the national technological giants to "suggest" to forget about buying with Americans.
Suppliers extinguish the tapes
The scale of the problem is gigantic. Nvidia She expected orders for more than 1 million H200s from Chinese customers (including Alibaby and ByteDance). Suppliers of parts who have worked 24/7 to make the shipment scheduled for March now halt production overnight. If the blockade persists, Nvidia – the world's most valuable company – can stay with immense supplies of equipment which it cannot sale anywhere else in specified a large quantity, and which was designed under specific, "Chinese" export requirements.
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China's betting on its own
The Beijing movement is simply a clear signal: the mediate State no longer wants to be a petent addicted to Washington's whims. By blocking Nvidia, Chinese authorities make area for native solutions specified as Ascend processors from Huawei. Although American systems inactive consider themselves more efficient, Beijing seemingly considered technological sovereignty to be more crucial than maximum computing power. This is simply a painful blow to Nvidia's president, Jensen Huang, who was inactive hoping for a large return to the Chinese market.
What does this mean for the market?
China's decision caused chaos on the stock exchanges and among semiconductor manufacturers. H200 is presently 1 of the most powerful AI systems in the world, and its blockade in China can slow down the improvement of generic artificial intelligence there (although it does not have to, due to the fact that China strategically can balance computational power by building possibly little energy-efficient but not necessarily little powerful data centers from its own systems).
Moreover, the situation forced by the authorities of the Central State forces Chinese engineers to optimize their own systems even faster. The trade war has entered the "return embargo" phase – now China decides who they will let to make money in their territory, utilizing technology as leverage in talks with the fresh administration in the White House.
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