According to the Financial Times, citing five people familiar with the matter, Nvidia has told its data center partners to reduce their exposure to Chinese customers. Cloud computing clients must now sell at least 51% of their services to non-Chinese companies, a restriction that did not exist before. The instructions were conveyed verbally through Nvidia's sales force and regional teams rather than in writing. The move complicates AI development for Chinese firms that have leased overseas computing capacity, including for model training, as Washington tightens Chinese access to advanced chips through cloud deals. The report also notes that Nvidia chips have been smuggled into China despite U.S. restrictions since at least 2022, and several senior Super Micro employees were charged earlier this year with smuggling about $2.5 billion worth of Nvidia AI servers to China.
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NVDAsemiconductorsChinadata centersartificial intelligence
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/02/2026 | 202.06 |
| Change that session | -1.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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