The second Nvidia came out with that press release about a special China-specific version I was expecting this to happen. Honestly, I’m not quite sure what they’re thinking. Congress is CLEARLY trying to control the export of this technology and limit the access the PRC has to it. Trying to end-run what will likely become an ITAR issue (if it isn’t already) is an objectively bad corporate strategy. The penalties for that sort of thing are fucking serious.
this post was submitted on 04 Dec 2023
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Absolute boneheaded move by NVIDIA. Guess they just saw dollar signs and stopped thinking. What I don’t get is they are already at like 300% capacity I don’t think there will be any business short falls from selling only to US customers
I think it's quite clever actually.
They clearly realise that if China can't buy their chips, the CPC will put the full force of a planned economy behind making their own. Once that happens cheap Chinese AI chips will eat their lunch.
Everyone thought that would happen with Huawei. What actually happened was a whole bunch of major countries banned Huawei imports and a lot of the ones that allowed them in are having second thoughts. Germany, for example, is in the early discussion phase to remove Huawei equipment (which is already deployed) from their cell network.
Exactly. They want to maintain their insane margins with their oligopoly. The second you get a viable cheap competitor, it will all come crashing down.
Of course, it's a massive undertaking to catch up enough to be feasible. But China has the manufacturing experience, and a government initiative could allocate an insane amount of resources behind it if they were motivated to.
So it's obviously in NVidia's best interest to deter it with appeasement.
Also I assume things move much faster there unlike here where every move needs to be scrutinised and approved by 400 different people on 350 different committees.
Dictatorships are more efficient, at a cost
Depends. Most of them turn into inefficient corruption at every level. China is a bit unique where they have corruption at every level, but also fall in line or get axed whenever there's a big initiative that has too much visibility.
Results vary widely. But at least things get made, big and fast. Quality on the other hand...
Sure, both will be, corruption is an inefficiency. But the authoritarian society is more egotistic, imo because of the power structure and hierarchy. Like companies meddling in politicians is an inefficiency existing in both
Good point! Hadn’t thought of that
Really, the only big market that is being targeted by the restrictions is Mainland China (pointedly not including Russia because it’s honestly not a very big market compared to like… New York State or Texas or California). Nvidia would have been fine.
I think you’re right: they got greedy (shocking, I know)
Large tech companies have been known to buy out smaller competitors before they become a threat or before somebody else buys them out. Not being able to do so with a government-funded Chinese company, I imagine killing the idea before it takes shape is a prudent business decision.
What I don’t get is they are already at like 300% capacity I don’t think there will be any business short falls from selling only to US customers
Because capitalism is about making EVEN MORE the next year. And EVEN MORE the year after that.
“Look, I know we made it your legal obligation to do everything you can to maximize profits for your shareholders, but we didn’t even give five minutes at the time to consider the ramifications of that decision, and now we would like the leopards to stop eating our faces.”
Who coaches all these twats into using exactly the same gestures and gesticulations during every fucking speech, it's all so empty and fake.
Apologies I don't know but: is Nvidia a US company? What happens if they decide China is the better market for them? They lose out on the US but gain on the Chinese? Doesn't the US need Nvidia for AI dominance? Why would they actively piss them off?
Again, sorry I don't follow these things closely.
nvidia is a US company. They are subject to ITAR regulations.
They need non-Chinese IP to build their GPUs and fab them (ie EUV tech and TSMC to fab).
China is a big market, but still smaller than the US and Europe by quite a bit.
Unless USA wants to do an England and lose a massive amount of bleeding edge tech IP, they would simply shut down any attempts of Nvidia to move outside the US's jurisdiction.
Nvidia's technology is tied to national security so it would never happen. Might as well ask why Lockheed Martin doesn't sell to China.
Nvidia is a U.S company (Santa Clara, on the east side of the silicon valley). They are a fabless company, so drivers and design are done in house, but actual chip production is outsourced.
Its extremely hard for companies to manage both design and manufacture(fabs), and the only companies who do both are Intel, Samsung, Texas Instruments (non bleeding edge), and the newish companies in China.
When you have companies like Apple with their M1 or Google with their pixel processors, they do not manufacture them theirselves, only design and outsource manufacturing, as it takes billions in investments to fund research and maintain fabs to be bleeding edge.
Its called profit driven captialism. Same reason why sancations on Russia worked out so bad. Oh, we can't sell to Russia. Bummer. Ayo look this new Armenian company is making a huge order! Splendid!
This is just like the "designer drugs" thing where regulation can never keep up, right? You can always make a new product that falls outside the current definition of what's restricted but inside the definition of what your customers want.
The government can't win without completely forbidding the export of electronics tech to China.
Nvidia is actively supporting our adversaries abroad with their military technology, should be arresting the entire c suite