On Thursday, a report highlighted concerns among Chinese authorities regarding remarks made by Howard Lutnick about Nvidia’s H20 computer chip.
During an interview with CNBC on July 15, Lutnick minimized the significance of the Trump administration’s recent decision to lift additional export controls that would have restricted sales of the H20.
“We don’t sell them our best. It’s not the second best, nor the third best,” Lutnick stated at the time.
He further commented, “You want to sell China to the point where developers get hooked on the American technology stack, and that’s what you’re thinking.”
Following Lutnick’s appearance on CNBC, Beijing initiated a regulatory crackdown, according to a report from the Financial Times. An official from China criticized Lutnick’s comments about the H20 chip, labeling them as “inhumanity,” according to two sources familiar with the response.
Nvidia’s stock, led by CEO Jensen Huang, was down by less than 1% in early trading on Thursday.
In reaction to pressure from the Chinese government, some tech companies in China have reportedly reduced their H20 orders.
One source from the Financial Times mentioned that Lutnick’s statements provided regulators with further justification to encourage tech businesses to adopt local chips instead.
Institutions that are part of this pressure strategy reportedly include the Cyberspace Management of China, the National Development and Reform Commission, and the Ministry of Industrial and Information Technology.
An Nvidia spokesperson remarked, “As both governments recognize, H20 is not for military products or government infrastructure. China won’t depend on American chips for its governance to keep the US from being reliant on Chinese products. But it’s beneficial for commercial use.”
The Commerce Department has not yet responded to requests for comments.
Nvidia’s chips have gained significant attention as they are considered the most advanced in the market, essential for powering artificial intelligence models. There are concerns that selling H20 chips to China could undermine the US’s position in the AI competition.
This scenario is emerging amid an ongoing trade dialogue between the US and China, which has seen some progress but no comprehensive agreement as of yet.
To secure the necessary export licenses, Nvidia and fellow chipmaker AMD have agreed to pay the US government 15% of their revenue from chip sales to China.
Howard Lutnick’s ‘offensive’ comments regarding Nvidia’s H20 chips upset China, according to a report.
On Thursday, a report highlighted concerns among Chinese authorities regarding remarks made by Howard Lutnick about Nvidia’s H20 computer chip.
During an interview with CNBC on July 15, Lutnick minimized the significance of the Trump administration’s recent decision to lift additional export controls that would have restricted sales of the H20.
“We don’t sell them our best. It’s not the second best, nor the third best,” Lutnick stated at the time.
He further commented, “You want to sell China to the point where developers get hooked on the American technology stack, and that’s what you’re thinking.”
Following Lutnick’s appearance on CNBC, Beijing initiated a regulatory crackdown, according to a report from the Financial Times. An official from China criticized Lutnick’s comments about the H20 chip, labeling them as “inhumanity,” according to two sources familiar with the response.
Nvidia’s stock, led by CEO Jensen Huang, was down by less than 1% in early trading on Thursday.
In reaction to pressure from the Chinese government, some tech companies in China have reportedly reduced their H20 orders.
One source from the Financial Times mentioned that Lutnick’s statements provided regulators with further justification to encourage tech businesses to adopt local chips instead.
Institutions that are part of this pressure strategy reportedly include the Cyberspace Management of China, the National Development and Reform Commission, and the Ministry of Industrial and Information Technology.
An Nvidia spokesperson remarked, “As both governments recognize, H20 is not for military products or government infrastructure. China won’t depend on American chips for its governance to keep the US from being reliant on Chinese products. But it’s beneficial for commercial use.”
The Commerce Department has not yet responded to requests for comments.
Nvidia’s chips have gained significant attention as they are considered the most advanced in the market, essential for powering artificial intelligence models. There are concerns that selling H20 chips to China could undermine the US’s position in the AI competition.
This scenario is emerging amid an ongoing trade dialogue between the US and China, which has seen some progress but no comprehensive agreement as of yet.
To secure the necessary export licenses, Nvidia and fellow chipmaker AMD have agreed to pay the US government 15% of their revenue from chip sales to China.
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