On Monday, Nvidia Corp, a leading American chip maker, acknowledged that it is providing a new state-of-the-art chip to China in compliance with the latest export control regulations. The company’s response came following a Reuters report highlighting that Chinese computer retailers are promoting products equipped with the aforementioned chip.

Named the A800, this chip marks the initial attempt by a U.S. semiconductor company to develop advanced processors specifically for China while adhering to the new trade guidelines set by the United States. Nvidia has expressed concerns over the potential financial implications, as the export restrictions have the potential to result in a significant loss in revenue, possibly amounting to hundreds of millions of dollars.