Nvidia Sets 51% Threshold for Global Cloud Providers: Chinese Clients Can No Longer Dominate Computing Power Business

The Financial Times, citing people familiar with the matter, reported that Nvidia has required global data center and cloud computing partners to sell at least 51% of their computing power services to non-Chinese customers starting this summer. The requirement was communicated verbally by the sales team, with no written documentation yet, and applies only to future business, leaving existing lease contracts unaffected.

The background is U.S. restrictions on exporting advanced GPUs to China, although Chinese companies can still rent high-end computing power through overseas cloud services. Nvidia tightened its procurement list in July this year, cutting the number of approved customers in Asia by more than half and strengthening scrutiny of cloud providers renting out GPUs, even conducting on-site inspections. Some Southeast Asian cloud providers are heavily reliant on Chinese customers and may struggle to find enough non-Chinese buyers in the short term, raising concerns they may be forced to scale back their data center operations.

[BlockBeats]