Nvidia AI Chips Getting Sold In China's Underground Market Amid US Sanctions: Reuters
Portfolio Pulse from Benzinga Newsbot
Despite US sanctions, Nvidia's high-end AI chips are being sold in China's underground market at double the usual price. The US export restrictions have created a de facto underground market, with vendors keen to avoid scrutiny from both US and Chinese authorities.
June 20, 2023 | 10:38 am
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Nvidia's AI chips are being sold in China's underground market despite US sanctions, potentially impacting the company's reputation and regulatory scrutiny.
The news of Nvidia's AI chips being sold in China's underground market despite US sanctions may not have a direct impact on the company's stock price in the short term. However, it could lead to increased regulatory scrutiny and potential reputational damage for Nvidia. The company has stated that it does not allow exports of the A100 or H100 to China and would take immediate action if a customer was found to be breaching their agreement. The US Department of Commerce also stated that export control measures have had a substantial impact on China's availability of high-end chips and that allegations of violations are investigated.
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