Nvidia Corp. (NASDAQ:NVDA) is reportedly asking data-center partners worldwide to restrict how cloud-computing services are sold to Chinese customers, potentially limiting access to advanced AI infrastructure.
Nvidia has introduced new requirements for cloud providers, mandating that at least 51% of their service revenue come from non-Chinese customers, The Financial Times reported Tuesday.
Nvidia’s sales and regional teams communicated the policy verbally instead of issuing written guidance. The rules apply globally, including to data centers outside Asia, and cover new contracts rather than existing leasing agreements, as per the report. Notably, the company previously had no comparable requirement.
Chinese technology companies have relied on overseas cloud leases for demanding artificial-intelligence applications, including training large models. The new restrictions could make that approach more difficult for future projects.
The policy arrives as Washington weighs tighter controls on Chinese access to advanced U.S. chips through overseas cloud providers. Nvidia has also narrowed its approved Asian customer base after conducting stricter compliance reviews.
Nvidia did not immediately respond to Benzinga’s request for comments.
China’s Push for AI Chip Independence
U.S. restrictions on high-bandwidth memory (HBM) and chipmaking equipment are limiting China’s advanced AI chip production, but experts warn they could accelerate Beijing’s push for domestic alternatives. UCLA professor Christopher Tang told Benzinga that HBM is the biggest immediate bottleneck, while Nvidia’s share of China’s AI accelerator market has effectively fallen to zero.
Last month, IDC reported that Nvidia held 34% of China’s AI accelerator market in the first half of 2026, compared with Huawei’s 28%, narrowing the gap, as Nvidia shipments fell 44% year-over-year to 678,000 units. IDC did not specify which Nvidia chips were included in its market-share estimate or whether it counted restricted B200 and B300 chips reportedly smuggled into China.
Benzinga’s Edge Rankings place Nvidia in the 97th percentile for quality and the 98th percentile for growth.
Price Action: Year-to-date, NVDA stock has surged 8.34%, as per Benzinga Pro. On Monday, it closed 1.26% lower at $202.06.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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