Comment on U.S. issues warning to NVIDIA, urging to stop redesigning chips for China
gravitas_deficiency@sh.itjust.works 11 months ago
The second Nvidia came out with that press release about a special China-specific version I was expecting this to happen. Honestly, I’m not quite sure what they’re thinking. Congress is CLEARLY trying to control the export of this technology and limit the access the PRC has to it. Trying to end-run what will likely become an ITAR issue (if it isn’t already) is an objectively bad corporate strategy. The penalties for that sort of thing are fucking serious.
1stTime4MeInMCU@mander.xyz 11 months ago
Absolute boneheaded move by NVIDIA. Guess they just saw dollar signs and stopped thinking. What I don’t get is they are already at like 300% capacity I don’t think there will be any business short falls from selling only to US customers
RobotToaster@mander.xyz 11 months ago
I think it’s quite clever actually.
They clearly realise that if China can’t buy their chips, China will put the full force of a planned economy behind making their own. Once that happens cheap Chinese AI chips will eat their lunch.
abhibeckert@lemmy.world 11 months ago
Everyone thought that would happen with Huawei. What actually happened was several major countries banned Huawei and a lot of the ones that allowed them in are having second thoughts. Germany, for example, is in the early discussion phase to remove Huawei equipment (which is already deployed) from their cell network.
Wrench@lemmy.world 11 months ago
Exactly. They want to maintain their insane margins with their oligopoly. The second you get a viable cheap competitor, it will all come crashing down.
Of course, it’s a massive undertaking to catch up enough to be feasible. But China has the manufacturing experience, and a government initiative could allocate an insane amount of resources behind it if they were motivated to.
So it’s obviously in NVidia’s best interest to deter it with appeasement.
Tangent5280@lemmy.world 11 months ago
Also I assume things move much faster there unlike here where every move needs to be scrutinised and approved by 400 different people on 350 different committees.
1stTime4MeInMCU@mander.xyz 11 months ago
Good point! Hadn’t thought of that
gravitas_deficiency@sh.itjust.works 11 months ago
Really, the only big market that are being targeted by the restrictions is Mainland China (pointedly not including Russia because it’s honestly not a very big market compared to like… New York State or Texas or California)
bobgusford@lemmy.world 11 months ago
Large tech companies have been known to buy out smaller competitors before they become a threat or before somebody else buys them out. Not being able to do so with a government-funded Chinese company, I imagine killing the idea before it takes shape is a prudent business decision.
guacupado@lemmy.world 11 months ago
Because capitalism is about making EVEN MORE the next year. And EVEN MORE the year after that.