News Summary

• "We are rapidly approaching what we call a 'two tech stack divide,' where in essence, each country, the US and China, are effectively walling off or ring-fencing their tech stacks from each other," TPW Advisory founder, Jay Pelosky told BI's Yuheng Zhan.
• Nvidia declined to comment on The Information's reporting too.The Chinese government's new directive is a huge downer for Nvidia, who has been working hard to come up with specialized offerings for the Chinese market.Nvidia is developing three new GPUs for China — the H20, L20, and L2.
• All three chips are designed to meet the restrictions under prevailing US sanction rules, Reuters reported in January, citing two people familiar with the matter.
• China is a very important market for the technology industry," Nvidia CEO Jensen Huang told the Financial Times in May 2023.But Nvidia's hard work could very well unravel with these new developments.
• In February, Nvidia CFO Colette Kress told investors that US export restrictions caused China's revenue share to plunge to a "mid-single-digit percentage.
• Representatives for China's Ministry of Industry and Information Technology, Alibaba, Baidu, ByteDance, and Tencent didn't immediately respond to requests for comment from BI sent outside regular business hours.