NVIDIA Corporation (NVDA, Financial) has announced significant regulatory developments that could impact its operations and product distribution. On January 13, 2025, the U.S. Government introduced the Interim Final Rule (IFR) titled "Export Control Framework for Artificial Intelligence Diffusion." This rule, published in the Federal Register on January 15, 2025, imposes a worldwide licensing requirement on products classified under specific Export Control Classification Numbers (ECCNs), including NVIDIA's DGX, HGX, and MGX systems.
The IFR mandates that any system incorporating covered integrated circuits (ICs) will require a license, affecting future NVIDIA ICs, boards, or systems classified under ECCN 3A090.a or 4A090.a. This includes products such as A100, A800, H100, H200, H800, B100, B200, GB200, L4, L40S, and RTX 6000 Ada. The rule is subject to a 120-day notice and public comment period, concluding on May 15, 2025. Compliance with the IFR's licensing and reporting requirements is expected to begin on this date unless the rule is modified or withdrawn.
In addition to the IFR, the Bureau of Industry and Security, Department of Commerce, published a rule on January 16, 2025, titled "Implementation of Additional Due Diligence Measures for Advanced Computing Integrated Circuits." This rule aims to prevent the diversion of ICs to unauthorized uses by requiring additional diligence from foundries and OSATs to verify technical parameters. However, as NVIDIA is an approved IC designer, this rule is not anticipated to impact its operations or product sales to China.
NVIDIA supports U.S. leadership in innovation and is committed to providing feedback during the IFR's notice and comment period. The company continues to advocate for the safe and responsible development of AI-powered systems and the establishment of new datacenters in the United States.
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