THE CHIPS ARE GROUNDED

The real news

The story, straight

A computer chip cannot cross a border just because somebody wants to buy it. Nvidia's H200 processors help train artificial intelligence systems, but shipping them also depends on government permission.

Think school permission slip, except the field trip is a data centre.

Reuters reported on November 5 that about 600,000 H200 chips were stored in Hong Kong awaiting shipment to mainland China, citing 2 people familiar with the matter. Beijing had not approved large-volume imports despite demand from Chinese technology firms.

Some chips had entered China, so this was not a complete shutdown.

On All-In's November 14 episode, a panelist said: "China doesn't even want the chips."

The reporting makes that shorthand worth unpacking: Chinese companies wanting Nvidia's computing power and Beijing restricting imports can both be true. Reuters also reports US lawmakers pushing tougher restrictions.

Wanting a product, allowing its export and approving its import are different questions.

Lil'meme has therefore joined the fastest-growing fictional profession in computing: queue trainer. His processors aren't learning anything, but their patience is becoming superhuman.

The useful takeaway: a warehouse backlog does not prove buyers disappeared. Sometimes the customer is ready and the permission slip isn't.

Sources: All-In, 00:48:13–00:57:57, https://www.youtube.com/watch?v=Uv2w4VTU-iQ&t=2893s ; Reuters via CNA, https://www.channelnewsasia.com/east-asia/nvidia-chips-pile-up-hong-kong-china-withhold-import-approval-6527371

Repost before my queue achieves consciousness.

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