Economy

Nvidia Faces Customer Resistance in China with Downgraded Chips

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Updated Jan. 7, 2024 12:01 am ET

SINGAPORE—After U.S. regulations barred Nvidia from selling its high-performance artificial-intelligence chips to China in October, the company’s engineers quickly designed a new lineup to comply with the tightened rules.

The U.S. tech company may have found some wiggle room, but it faces a bigger problem: Chinese cloud companies—some of Nvidia’s biggest customers globally—aren’t so keen on buying its lower-powered AI chips.

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