Nvidia Corp. has instructed its global cloud computing clients to limit their business with Chinese entities by ensuring at least 51% of their services are provided to buyers outside China. The move applies to future contracts while leaving existing leases intact. The decision follows ongoing US efforts to restrict advanced AI semiconductor access and combat chip smuggling to China, with Nvidia emphasizing that domestic chip infrastructure is vital for American AI development.
Nvidia's cloud client restrictions
- ▪Nvidia Corp.'s new 51% compliance guidelines requiring cloud clients to scale back Chinese business will apply globally but affect only future contracts, leaving existing leasing deals unaffected
- ▪Nvidia Corp. instructed its cloud computing clients to ensure at least 51% of their own services are sold to companies outside China, according to a Financial Times report on November 3, 2026
US restrictions on chips to China
- ▪The United States government has taken measures to dismantle smuggling networks that transport advanced semiconductor chips into China
- ▪The United States government has sought to restrict sales of Nvidia Corp.'s advanced artificial intelligence chips to China due to national security concerns
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