Nvidia is tying future business with cloud and data center partners to their customer mix, requiring at least 51% of computing services to go to non-Chinese buyers, the Financial Times reported.
The condition could carry a cost for Southeast Asian cloud companies with large Chinese client bases. Some fear they may have to scale back data center operations if they cannot attract enough other customers, the Financial Times reported.
Nvidia has also increased scrutiny of providers that rent out graphics processing unit (GPU) capacity, the Financial Times reported. Its reviews have included data center inspections, contract checks and interviews with end users, according to the newspaper. In July, the company cut its list of Asian customers approved to buy AI chips by more than half, the Financial Times reported.
Chinese AI companies can use GPUs hosted in Singapore and Malaysia through remote cloud connections without moving the chips into China. The 51% threshold adds the identity of the buyer to the question of where the hardware is shipped.
Lease agreements already signed are exempt from the new condition, the Financial Times reported. Nvidia sales teams have communicated it verbally since summer, and the company has not issued written terms, according to the newspaper.
