Nvidia NVDA has instructed its data center partners to reduce their exposure to Chinese customers, according to a Financial Times report published Tuesday, amid Washington’s increasing efforts to restrict Beijing’s access to advanced artificial intelligence chips.
The world’s largest chipmaker has reportedly told cloud computing partners to ensure that at least 51% of their services are sold to non-Chinese companies.
The guidance was communicated verbally through Nvidia’s sales teams and regional offices rather than through formal written instructions, the report said.
The reported restrictions apply to new contracts and do not affect existing agreements.
Nvidia has not officially confirmed the policy.
What has Nvidia told its partners?
The reported requirement would push data center operators to diversify their customer base and reduce the proportion of computing services supplied to Chinese businesses.
The development could create additional challenges for Chinese AI companies that have relied on overseas cloud providers to access advanced Nvidia processors.
Renting computing capacity outside China has offered these companies an alternative route to using powerful American chips without importing them directly.
A follow-up report by The Information said Nvidia’s instructions were intended to encourage a broader customer mix and were not being enforced as a mandatory restriction.
The distinction suggests the company is seeking greater oversight of how its chips are used.
Nvidia defends American chip infrastructure
America cannot win the AI race unless America's AI infrastructure wins worldwide — if the world's clouds rely on foreign-made chips, the model and application layers will be foreign-built as well.
Nvidia neither confirmed nor denied the report. However, the company emphasized the importance of expanding the global reach of American-built AI infrastructure.
“Datacenters and clouds built on American chips are the foundation that American model and application makers need to compete worldwide,” the company said in a statement cited by AFP.
It added that America’s ability to compete in AI depends on its infrastructure being widely adopted across global cloud networks.
Chinese Foreign Ministry spokeswoman Mao Ning told AFP that she was unaware of the reported restrictions.
She added that Beijing hopes companies from all countries will receive a fair, transparent and non-discriminatory business environment.
Nvidia under scanner
The reported move comes as Washington continues to restrict exports of advanced AI processors to China, citing national security concerns and the potential military applications of the technology.
Last week, a New York Times investigation reported that US intelligence officials suspected a Chinese businesswoman associated with Singapore-based data center company Megaspeed of passing commercial information to Beijing.
Nvidia CEO Jensen Huang had reportedly developed a close relationship with the executive. Nvidia has said their interactions were routine business meetings.
Separately, a contractor linked to server maker Super Micro pleaded guilty in October to participating in a scheme to illegally divert Nvidia-powered AI servers to China.
Prosecutors allege that there are two others associated with Super Micro, including a co-founder of the AI-server maker, who conspired to divert about $2.5 billion worth of US AI technology to China in violation of export laws.
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