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As per leaked documents and information from four knowledgeable sources, Nvidia has developed three novel cards exclusively tailored for the Chinese market to address the country’s growing demand for artificial intelligence technology while adhering to US export limitations.
To maintain a stronghold in one of its key sectors, Nvidia, headquartered in Silicon Valley, has had to revamp its product offerings for Chinese customers for the second time in less than a year due to recent US legislation.
Amidst an ongoing software battle between the US and China, Nvidia is gearing up to unveil these new cards shortly after the US imposed restrictions on the sale of high-performance cards in China that could be utilized for AI system development.
As outlined in a report shared by Nvidia with potential clients and obtained by the Financial Times, the three new Intellia chips are named H20, L20, and L2.
Although the overall performance of these cards is somewhat reduced compared to Nvidia’s recent offerings in China, insiders suggest that the new graphics processing units (GPUs) are expected to remain competitive in the Chinese market.
In a communication to users on Thursday, analysts at chip firm Semi Analysis noted that Nvidia is skillfully balancing top performance and mass efficiency with these new cards to comply with the updated US regulations.
Nvidia did not immediately respond to a request for comment.
Under the leadership of co-founder Jensen Huang, Nvidia’s market capitalization has surpassed $1 trillion this year, driven by investor optimism regarding its dominant position in supplying processors essential for AI system development. The company’s A100 and H100 chips are highly sought after by IoT companies worldwide seeking to advance AI technologies such as OpenAI’s revolutionary ChatGPT.
In response to the Biden administration’s decision to halt sales of the A100 and H100 GPUs in October 2022 to curb China’s AI advancement, Nvidia introduced two alternative models for the Chinese market, the A800 and H800, which did not meet the performance criteria stipulated by US regulations. However, with the recent relaxation of these restrictions, the A800 and H800 models were also affected.
As the US expedited the implementation of the latest export restrictions, Chinese tech firms found themselves reliant on outdated and mined chips to progress in their AI endeavors. The regulations mandated Chinese entities to utilize outdated technology dating back six years for their AI projects.
Despite these challenges, Nvidia continues to expand rapidly, having previously held a significant share of China’s artificial chip market. Sources familiar with the matter indicated that the development of its latest chips for the Chinese market was more straightforward compared to the A800 and H800 models. Nvidia has reportedly dispatched sample cards to clients for evaluation, indicating its intent to commence mass production soon.
Meanwhile, Chinese companies have intensified efforts to source AI chips from domestic suppliers, reducing dependence on Nvidia and accommodating the escalating restrictions on AI chip imports. Notable Nvidia competitors in China include Huawei, Cambricon, and Biren. In August, the CEO of Chinese AI firm iFlyTek suggested that Huawei’s Ascend AI chip could rival Nvidia’s A100 in performance.
However, geopolitical tensions have hindered the operations of all foreign competitors of Nvidia in China, preventing them from manufacturing chips outside the country. Additionally, international sanctions have aimed to restrict their access to suppliers like ASML, a Dutch company specializing in advanced chipmaking equipment.
