Nvidia has verbally instructed cloud computing clients worldwide to sell at least 51% of their services to non-Chinese companies, according to sources familiar with the matter. The directive applies to future contracts. It is intended to further restrict China’s access to advanced AI chips by limiting its ability to lease computing power from data centers outside China.
The move escalates efforts to enforce US restrictions on China’s AI development. Nvidia’s sales teams communicated the instructions verbally rather than through a formal written policy.
The company has also increased vetting of customers in Asia and conducted physical inspections of data centers to verify end users and prevent the diversion of advanced technology.