[News] NVIDIA’s SEC Filing Highlights U.S. AI Diffusion Rule’s Impact on B200, GB200 with No Financial Warning

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As the Biden administration brought hammer down on AI chip exports by introducing a three-tier system based on countries and companies, NVIDIA has voiced its disagreements on the regulations, calling it a “misguided AI diffusion rule.

Notably, in a recent 8K filing with the SEC, the U.S. chipmaker outlined its assessment of the impact of these new restrictions, highlighting that its latest B200 and GB200 products will be affected.

In a 8K filing it submitted to SEC on January 13rd, NVIDIA revealed the scope of products affected by the AI diffusion rule. According to its statement, the rule will impact a broad range of its GPU products starting May 15, 2025, unless changes are made.

The rule applies to products meeting 3A090.a or 4A090.a specifications, including A100, A800, H100, H200, H800, B100, B200, GB200, L4, L40S, and RTX 6000 Ada, as noted by NVIDIA.

No Material Financial Impact Mentioned

It is worth noting that the filing does not warn of any material financial impact. While the new rules won’t take effect for 120 days, it may allow the incoming Trump administration time to weigh in.

Unlike previous rules, which are mostly presented as blacklists, the new restrictions apply globally, using a whitelist approach. Only 18 key allies and partners are exempt from the controls, with countries like U.S., Canada, Germany, Japan, the Netherlands, South Korea and Taiwan leading the way.

Furthermore, in terms of the “Additional Due Diligence Measures” Rule, which requires additional diligence for foundries and OSATs to verify technical parameters, NVIDIA states that as it is an approved IC designer, the rule is not expected to have an impact on its operations or on product sales to China.

Uncertainties Lurk as China Remains a Major Market

However, according to a previous report from Reuters, NVIDIA earns about 56% of its revenue from international markets, with China accounting for 17% of sales. Therefore, the new rules will likely reduce NVIDIA’s market in a considerable way, as nearly half of its chips now go to countries that will be restricted, as noted by the report.

Additionally, the Reuters report notes that the new rules may allow major cloud providers like Microsoft, Google, and Amazon to seek approval to bypass licensing for AI chips, enabling them to set up data centers in restricted countries, which will boost their market dominance in AI.

Read more

• [News] Biden’s AI Chip Export Curbs in the Works: Key Points of Three-Tier System at a Glance
• [News] NVIDIA’s Revenue at Risk as U.S. AI Chip Export Restrictions Loom; Big CSPs Set to Benefit

(Photo credit: NVIDIA)