Nvidia requires cloud partners to allocate 51 percent of services outside China

Nvidia has instructed its cloud data center partners to allocate a minimum of 51 percent of their cloud services to clients located outside of China. According to Financial Times, citing five different sources, this new requirement applies strictly to upcoming contracts while leaving existing agreements entirely untouched.

Qisqacha: - Nvidia mandates cloud partners to direct 51% of services outside China. - The directive applies only to new contracts, leaving current agreements active. - The move aims to restrict Chinese AI developers' access to foreign computing power. - US-China tech tensions continue to escalate amid ongoing export controls.

Details of the new cloud restrictions and Nvidia's stance

Reports indicate that Nvidia communicated this instruction through its sales staff and regional teams rather than issuing formal written guidelines. Previously, the tech giant had not imposed such geographic constraints on its cloud ecosystem partners. Nvidia neither confirmed nor denied the Financial Times report, stating only that the United States cannot win the artificial intelligence race without a global expansion of American AI infrastructure.

Impact on Chinese AI developers and semiconductor export controls

This new restriction will significantly hinder Chinese artificial intelligence developers who frequently lease server capacity from international cloud providers to train their proprietary models. Washington has spent years attempting to close alternative channels that allow companies in mainland China to access cutting-edge American technologies. Although strict export controls on high-end Nvidia accelerators have been in place since 2022, hardware continues to find its way into the country through various illicit grey-market routes.

Beijing's countermeasures and broader industry context

Meanwhile, Beijing has implemented its own restrictions on foreign technologies, including a ban enacted last year on installing overseas AI accelerators in state-funded data centers to support domestic semiconductor manufacturers. Chinese Foreign Ministry spokesperson Mao Ning stated that she was unfamiliar with the Financial Times report but expressed hope for fair and non-discriminatory business conditions for all countries. The black market risks remain high, underscored by legal actions in early 2026 when several executives and employees of server maker Super Micro were charged with smuggling Nvidia AI server equipment worth approximately $2.5 billion.