Nvidia reportedly sets a 51% non-Chinese sales threshold for cloud clients

The Financial Times reported that Nvidia told cloud-computing and data-center clients to ensure at least 51% of their services go to non-Chinese companies.[1][2] Silicon Report said the measure would reduce revenue from Chinese clients to below half.[1] The directive would introduce a quota that had not existed previously, according to Silicon Report.[1] The report cited five people familiar with the matter.[1] For cloud providers assessing customer mix, the reported percentage is the central operational requirement; the available evidence does not specify how Nvidia would measure services or verify compliance.[2]

The reported instruction applies to cloud-computing and data-center clients worldwide, rather than only to facilities in Asia.[1] The quota is for future contracts, while existing agreements are exempt, according to the Financial Times report.[1] That distinction makes contract timing relevant to providers reviewing potential exposure: the reported measure does not require existing agreements to be brought under the threshold.[1] The evidence does not give a start date for the rule or define which future contracts would qualify, so providers may need clarification before translating the reported instruction into account-level decisions.

People familiar with the directive said Nvidia communicated it verbally through sales staff and regional personnel in recent months, rather than in writing.[1] Nvidia neither confirmed nor denied the Financial Times report when asked by Agence France-Presse.[1] The evidence therefore describes a reported instruction, but does not include a written policy or a detailed account of enforcement procedures.[1] Silicon Report also said Chinese technology firms have relied on offshore cloud infrastructure for high-performance AI workloads, including model training.[1] That context helps explain why a change affecting cloud services could matter beyond providers’ direct sales relationships.

Cloud operators told Silicon Report that meeting the sales threshold would be challenging.[1] The report said securing enough non-Chinese clientele outside the U.S. is difficult, and a provider warned that strict enforcement would damage its business.[1] Silicon Report also reported that Nvidia had cut by more than half the number of Asian customers approved to purchase its AI processors.[1] Separately, Nvidia said U.S.-chip-based data centers and cloud services provide a foundation for American model and application makers to compete globally.[1] Mao Ning called for a fair, transparent and nondiscriminatory business environment for companies from all nations.[1]