Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares dropped nearly 4% after reports that the White House has barred the company from selling its latest scaled-down AI chip, the B30A, to China.
According to The Information, the chip had already been sampled by several Chinese firms and is powerful enough to train large language models when deployed in clusters, a key capability for China’s tech industry.
Nvidia confirmed to Reuters that it has “zero share” in China’s data centre computing market and that this market is excluded from its forecasts. The company is reportedly redesigning the B30A in hopes of easing US export restrictions.
The decision marks another blow for Nvidia, as Beijing has introduced new rules requiring state-funded data centres to use only Chinese-made chips.
Projects less than 30% complete must remove foreign hardware, further squeezing foreign suppliers from one of the world’s fastest-growing AI infrastructure markets.