The Financial Times reported Tuesday that Nvidia requires cloud providers to earn at least 51% of service revenue from non-Chinese customers. Nvidia is reportedly asking data-center partners around the world to limit cloud-service sales to Chinese customers, potentially reducing access to advanced AI infrastructure.
The Financial Times reported that Nvidia's sales and regional teams conveyed the requirements orally rather than through written instructions. According to the Financial Times, the requirements cover new contracts worldwide, including data centers outside Asia, but exclude existing leasing agreements. The Financial Times reported that Nvidia previously imposed no equivalent requirement.
Chinese technology companies have used overseas cloud leases for demanding AI workloads, including large-model training. The restrictions could complicate that approach for future projects. Washington is considering stronger controls on China's access to advanced U.S. chips through overseas cloud providers. Nvidia has also reduced the number of approved customers in Asia following tougher compliance checks. Nvidia did not immediately answer a request for comment.
U.S. controls on high-bandwidth memory (HBM) and chipmaking equipment constrain China's production of advanced AI chips. However, experts warn that those restrictions could speed up China's development of domestic alternatives. UCLA professor Christopher Tang identified HBM as the most immediate production constraint. Tang said Nvidia's share of China's AI accelerator market has effectively dropped to zero.
IDC reported last month that Nvidia accounted for 34% of China's AI accelerator market during the first half of 2026, compared with Huawei's 28%. IDC reported that Nvidia shipments dropped 44% year over year to 678,000 units. IDC did not identify the Nvidia chips covered by the market-share estimate. IDC also did not clarify whether the estimate included restricted B200 and B300 chips reportedly smuggled into China.
Benzinga Pro data show that NVDA shares have gained 8.34% year to date. Nvidia shares ended Monday at $202.06, a decline of 1.26%.
Nvidia Restricts Chinese AI Access via Cloud Partners
BenzingaShare
Summary
Nvidia is restricting Chinese AI access through cloud partners, requiring at least 51% of service revenue to come from non-Chinese clients. The policy, shared verbally with global data-center partners, does not affect existing leasing deals but could limit Chinese firms’ access to advanced AI infrastructure. U.S. regulators are also looking at tighter controls on China’s access to advanced chips via overseas cloud providers. AI + crypto news continues to show how geopolitical moves impact tech and financial markets. Inflation data remains a key factor for investors tracking macro trends.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.