Recently, the US government increased restrictions on exporting high-end AI chips to China. Nvidia, for the second time, is exploring modifications to maintain GPU sales in China while adhering to the new rules imposed by Washington. Reports indicate that Nvidia, a leader in GPU development for advanced AI models, is considering crafting chips specifically for the Chinese market. This move signifies the company’s effort to retain over $5 billion worth of reported advanced chip orders in China.
What is the new
Under the revised law, there’s a prescribed limit on the computing power allowed for chips intended for export to China. The regulations stipulate that, in certain instances, chips may be permitted to be shipped to China but necessitate a license. These regulations were implemented due to apprehensions about the potential military applications of these components.
Consequently, Nvidia faced restrictions on selling A100 and H100 chips in China. As a response, the company developed the A800 and H800 chips tailored for the Chinese market. However, the stringent regulations compelled the chipmaker to undertake additional modifications to the design.
Nvidia may launch new chips
Reportedly, Nvidia has developed three new chips specifically designed for the Chinese market, namely the HGX H20, the L20, and the L2. Among these, the H20 is purportedly the most powerful. Importantly, all three chips adhere to the computing power threshold outlined in the new export regulations.
Consequently, to support AI applications, Chinese customers might require a larger quantity of these chips compared to higher-spec models. Nvidia is expected to unveil and potentially commence the sale of these chips as early as November 16, with availability before the year concludes.
In the meantime, there are reports indicating that Chinese companies such as Baidu, Huawei, Xiaomi, and Oppo have initiated the development of their own semiconductors. Despite this trend, it is suggested that certain customers might continue to choose Nvidia as their preferred partner, citing the company’s strong software support for AI development.
