Nvidia denies rumors it will sever supplies to China – report

Nvidia (NASDAQ:NVDA) said recent social media posts alleging that the company would cut supplies to China were false, Reuters reported.

The U.S. tech giant noted that China is an important market and it would continue to provide high-quality products and services to Chinese customers, the report added.

Nvidia did not respond to a query from Seeking Alpha till the time this story was published.

Earlier this week, it was reported that China’s antitrust agency opened a probe into the Jensen-Huang led company on concerns it may have breached monopoly laws.

In December, the U.S. Department of Commerce placed additional curbs on China’s access to vital tools and components for AI chips.

In October 2023, the U.S. brought in updates to its export restrictions which would curb the sale of chips that Nvidia made for the Chinese market, such as the A800 and H800 chips, as part of Washington’s efforts aimed at hindering China’s access to advanced semiconductor technology. The U.S. had also restricted Nvidia from selling the A100 and more powerful successors, including the H100, in China. This had prompted Chinese companies to buy less-powerful Nvidia chips.

Chinese companies such as Huawei Technologies and ByteDance have also began manufacturing AI chips in an effort to rival Nvidia in China.