The U.S. government has barred Nvidia from exporting computer chips to select countries in West Asia, similar to previous restrictions imposed on China.
Nvidia is a technology giant known for its Graphics Processing Units (GPUs), which are integral to AI computing and widely used in gaming and graphic design.
Nvidia's GPUs are vital for AI applications, including chatbots like GPT, and are favored for their multitasking capabilities.
Nvidia's stock price surged by 234 percent, making it one of the world's most valuable companies, with a valuation of 1.2 trillion dollars.
Major Chinese companies like Baidu, ByteDance, and Tencent have placed significant orders for Nvidia chips, with the total bill exceeding five billion dollars.
The demand for Nvidia chips is driven by the global AI race, with tech companies and countries vying for AI dominance.
Nvidia's market dominance grants the U.S. significant influence over global tech supplies and pricing, potentially leading to trade tensions and conflicts.
The U.S. has a history of using its dominant position in tech to enforce policies and gain favorable trade terms, which may continue in the future.
Nvidia has become a major player in the global tech market, with a valuation of 1.2 trillion dollars, and this move highlights how tech companies can be weaponized in geopolitical conflicts, giving the U.S. significant leverage.