Nvidia has ordered a global restriction in data centers, China is suffering from it

Nvidia plans to impose global restrictions on data centers regarding business with Chinese companies, limiting their share to 49%. This new policy, communicated to clients, aims to ensure that at least 51% of the customer base is non-Chinese. The restrictions apply to new contracts only and do not affect existing agreements. Nvidia emphasizes the importance of American chips for global competitiveness in AI development. The move aligns with U.S. efforts to curb China's AI advancements, including restrictions on hardware sales. Despite these measures, Nvidia hardware is still found in Chinese state-owned data centers, raising questions about the effectiveness of the restrictions.