Nvidia tightens China curbs amid AI rivalry

Nvidia, the leading US chipmaker, is tightening restrictions on its relationships with Chinese customers in the data center industry, according to a report by the Financial Times. The tech giant is now requiring its cloud computing clients to allocate at least 51% of their services to non-Chinese entities, based on information from five individuals familiar with the situation.

These new guidelines only apply to future contracts, and do not impact existing agreements, the report stated. The company has not confirmed or refuted the claims to AFP, but issued a statement highlighting the importance of American-made data centers and clouds for global competition. "American chip-based datacenters and cloud computing are the bedrock that American software developers and application makers need to succeed globally," the statement read.

"The United States cannot claim victory in the AI arms race unless the infrastructure that powers AI is built and owned by American companies. If the world's major cloud providers rely on foreign-made chips, the entire AI ecosystem will be built abroad as well."