The US government has recently tightened import restrictions on high-end AI chips destined for China. In response, Nvidia is exploring strategies to continue selling its GPUs in China while complying with the new regulations set by Washington.
Nvidia, renowned for its cutting-edge GPUs tailored for sophisticated AI applications, is contemplating the production of chips specifically designed for the Chinese market. This move signifies Nvidia’s reluctance to fulfill the substantial over $5 billion worth of advanced chip orders from China.
Under the stricter regulations, devices intended for export to China are now subject to limitations on computing power. Some chips may still be eligible for export to China but will require licensing under certain circumstances mandated by the new rules, especially if there are concerns about potential military applications of the components.
To navigate these challenges, Nvidia introduced the A800 and H800 cards exclusively for the international market since acquiring the cards in China became unfeasible. The revised regulations compelled Nvidia to further refine its approach.
Reports suggest that Nvidia is poised to unveil a trio of new cards tailored for the international market, namely the L20, L2, and HGX H20. Among these models, the H20 is rumored to offer the highest performance, all while adhering to the mandated computing power restrictions.
Foreign buyers may find themselves needing a larger quantity of chips to support AI software applications compared to what would be necessary with higher-spec models. Nvidia is expected to reveal these new cards, possibly as early as November 16, with sales set to commence before the year concludes.
Nevertheless, speculations indicate that Chinese companies such as Baidu, Huawei, Xiaomi, and Oppo have initiated the development of their own electronic components. Despite this trend, due to Nvidia’s robust application support for AI advancements, some customers may opt for Nvidia as their preferred partner.
