NVIDIA Requires Cloud Providers to Allocate 51% of Computing Power to Non-Chinese Clients

NVIDIA has requested global data centers and cloud computing partners to sell at least 51% of their computing power services to non-Chinese clients. This requirement has been communicated verbally by the sales team since this summer and applies to future business; existing leasing contracts are not affected. Previously, the U.S. had restricted the export of advanced GPU entities to China, but Chinese companies can still rent high-end computing power through overseas cloud service providers. Some Chinese AI companies are remotely using GPUs via data centers in Singapore, Malaysia, and other locations, becoming an important channel for accessing advanced computing power. In July of this year, NVIDIA tightened its procurement list for AI chips from Asian clients, focusing on scrutinizing cloud service providers that rent out GPUs. Staff will conduct on-site inspections of data centers, verify contracts, and interview end users. This restriction extends to the final buyers of computing power, and some Southeast Asian cloud providers rely on Chinese clients, making it difficult to find enough non-Chinese buyers in the short term. Interviewed cloud providers are concerned that they may need to reduce their data center operations if they cannot meet the requirements.

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