Nvidia to develop new chips that comply with US export regulations

SINGAPORE (Reuters) -Nvidia will continue to develop a new set of products that comply with U.S. government regulations involving exports of high-end chips to China, its CEO Jensen Huang said on Wednesday.

The California-based artificial intelligence chip designer has commanded more than a 90% share of China’s $7 billion AI chip market, but analysts have said tightening U.S curbs on chip exports are likely to create opportunities for Chinese rivals to make inroads.

“Nvidia has been working very closely with the U.S. government to create products that comply with its regulations,” Huang told reporters in Singapore at a news conference.

“Our plan now is to continue to work with the government to come up with a new set of products that comply with the new regulations that have certain limits.”

The company warned during its November earnings that it expects a steep drop in fourth quarter sales in China in the wake of the new U.S rules. 

Reuters last month reported Nvidia had told customers in China it was delaying the launch of a new AI chip it designed to comply with U.S. export rules until the first quarter of next year, citing sources familiar with the matter.

Huang also said on Wednesday the company was in talks with Singapore about potential big investments.

(Reporting by Fanny Potkin; Writing by Miyoung Kim; Editing by Tom Hogue and Jamie Freed)