Nvidia reportedly tells data center customers to trim exposure to the Chinese market

Nvidia's new rule forces foreign cloud providers to reconsider doing business in China Chinese AI companies face fewer routes to powerful American processors Nvidia has sharply reduced the number of approved Asian chip buyers Nvidia is tightening commercial restrictions on foreign cloud providers, r

<![CDATA[ <article> <ul><li><strong>Nvidia's new rule forces foreign cloud providers to reconsider doing business in China</strong></li><li><strong>Chinese AI companies face fewer routes to powerful American processors</strong></li><li><strong>Nvidia has sharply reduced the number of approved Asian chip buyers</strong></li></ul><p>Nvidia is tightening commercial restrictions on foreign cloud providers, requiring them to reduce their reliance on Chinese businesses that use its advanced AI processors.</p><p>The new condition requires affected companies to generate at least 51% of their revenue from customers outside China, potentially disrupting existing business arrangements.</p><p>The requirement applies globally, and its consequences could be particularly significant for <a href="https://www.techradar.com/pro/best-data-center-proxies">data center</a> operators serving Chinese technology companies.</p><h2 id="nvidia-introduces-new-restrictions-for-foreign-cloud-providers">Nvidia introduces new restrictions for foreign cloud providers</h2><p>The <a href="https://www.ft.com/content/1902df70-1380-4588-bad5-171352b575f2" target="_blank" rel="nofollow">Financial Times</a>, citing people familiar with the discussion, said Nvidia communicated the requirement verbally through its sales representatives and regional management teams.</p><p>The company introduced the condition during the summer, applying it to future commercial agreements rather than existing cloud computing contracts.</p><p>Two sources confirmed that the restrictions cover Nvidia customers worldwide, rather than applying exclusively to facilities operating across Asian markets.</p><p>The policy requires cloud computing businesses to demonstrate sufficient demand from international customers before continuing their commercial relationships with Nvidia.</p><p>“Data centres and clouds built on American chips are the foundation that American model and application makers need to compete worldwide. Longstanding US policy encourages every cloud to build on American infrastructure and to win business everywhere they can,” Nvidia said. </p><p>“America’s longstanding policy has always supported the build-out of American infrastructure worldwide, bringing prosperity, influence and jobs home.”</p><p>The company's approach comes amid increasing scrutiny from Washington over how advanced American <a href="https://www.techradar.com/news/best-processors">processors</a> reach Chinese technology businesses.</p><p>US authorities have been attempting to restrict access through intermediaries, foreign computing facilities and other commercial arrangements that circumvent existing export controls.</p><h2 id="chinese-technology-companies-face-mounting-computing-constraints">Chinese technology companies face mounting computing constraints</h2><p>Chinese technology companies have increasingly depended on foreign cloud providers to access advanced processors unavailable through direct purchases.</p><p>These arrangements allow them to use powerful computing systems for demanding AI operations, including training <a href="https://www.techradar.com/computing/artificial-intelligence/best-llms">large language models</a>.</p><p>Nvidia's B300 processors illustrate the financial incentives behind this market, with a complete rack selling for approximately $600,000 internationally.</p><p>However, a rack reportedly sold for about $2.8 million in China in October 2026 because of limited availability.</p><p>The B300 is among Nvidia's most advanced processors, but American export restrictions prohibit its direct sale into China.</p><p>Nvidia has also cut the number of Asian companies authorised to purchase its AI chips by more than half this year.</p><p>The company introduced stricter compliance checks to prevent restricted processors from reaching China through unauthorised suppliers and intermediaries.</p><p>Its latest requirements are also creating difficulties for foreign data center operators that previously depended on Chinese businesses for revenue.</p><p>These operators must now find enough customers elsewhere to ensure that at least 51% of their services go to non-Chinese companies.</p><p>A Singapore-based cloud provider said securing sufficient international customers outside America had become difficult under the new requirements.</p><p>“If strictly implemented, it will definitely hurt business,” said a representative of the Singapore-based group.</p><p>Consequently, Chinese technology companies could find it increasingly difficult to rent advanced computing capacity from foreign providers, affecting their access to resources needed for AI development. </p><figure class="van-image-figure inline-layout" data-bordeaux-image-check="" ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:676px;"><p class="vanilla-image-block" style="padding-top:31.51%;"><img id="diM9tpwF2Lz85R8q85CT78" name="tr-g_news" alt="Google logo on a black background next to text reading 'Click to follow TechRadar'" src="https://cdn.mos.cms.futurecdn.net/diM9tpwF2Lz85R8q85CT78-1920-80.jpg" mos="" align="middle" fullscreen="" width="676" height="213" attribution="" endorsement="" class="inline" /></p></div></div></figure> </article> ]]>