At a financial conference on Wednesday, Nvidia CFO Colette Kress minimized the potential effect of export limits, affirming that they would not be causing an "instantaneous financial effect" on the rapidly growing chipmaker.
On Tuesday night, the Wall Street Journal reported the U.S. was exploring limiting exports of Artificial Intelligence (AI) chips to China, which would potentially affect Nvidia - the head in the industry of graphics processors vital for developing AI programs such as ChatGPT. Nvidia CFO Colette Kress, during a financial conference on Wednesday, mentioned these limitations would not likely yield an "immediate financial impact", though further rules may hamper the company's expansion prospects. Nvidia's share prices progressed after Kress' words, before declining 1.8% yesterday. Nonetheless, the company's stocks have risen by over 179% in 2023. Kress also divulged they are aware of the reports that the Department of Commerce is mulling additional regulations possibly limiting the export of their A800 and H800 chips to China. But she noted, with the demand of their products globally, they doubt these newest regulations, if applied, would prompt an instantaneous substantial blow to their financial results.
CNBC reports on Google engaging in constructive conversations with the European Union about regulating Artificial Intelligence. Former Google CEO Eric Schmidt expresses concern that AI could create chaos during elections. Additionally, Chinese AI stocks have taken a hit after news of the US possibly clamping down on chip exports.
Google has reportedly been engaged in productive conversations with the EU concerning Artificial Intelligence (A.I.) regulations, according to a statement by the tech giant's cloud boss. Ex-Google CEO Eric Schmidt recently warned that elections could become a "mess" because of A.I. technology. On the same day, stocks of Chinese A.I. companies plummeted after reports surfaced that the U.S. was contemplating restrictions on semiconductor exports to certain countries.
Kress stated that China is responsible for 20-25% of the company's data center revenue of $4.28 billion from this quarter, which includes chips used for AI and networking parts. He elaborated, “Over the long term, restrictions prohibiting the sale of our data center products to China, if implemented, would lead to a permanent loss of opportunities for U.S. industry to compete and be a leader in one of the world's largest markets. And that will have an effect on our future business and financial results.” Nvidia is the frontrunner in providing components for building AI systems, and their A100 and H100 chips are sought after by AI engineers. So, Washington has been trying to bloc Chinese access to the company’s technology to forestall people/companies in the nation from surpassing the U.S. To adhere to the US export controls, Nvidia presented A800 and H800 chips with tweaked and slowed-down hardware. However, the Wall Street Journal reported that the Department of Commerce’s fresh limitations may impede the export of even those chips.
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