Nvidia, the U.S. AI chip giant, is reportedly planning to release new artificial intelligence chips specifically designed for the Chinese market. This move comes less than a month after the U.S. government tightened its restrictions on selling high-end AI chips to China. According to the chip industry newsletter SemiAnalysis, the upcoming Nvidia chips will be called the HGX H20, L20 PCIe, and L2 PCIe, with a potential announcement date of November 16.
Although these new chips will include most of Nvidia’s latest AI features, they will have reduced computing power measures to comply with the new U.S. rules. The White House and the Commerce Department have not yet responded to requests for comment. Last month, Nvidia stated that the export restrictions would prevent it from selling two of its modified advanced AI chips (the A800 and H800) in China. These chips were originally created last year to meet the previous export rules.
According to an analysis by the newsletter, the reported chips from Nvidia seem to fall below the absolute caps on computing power. However, one of the chips is considered to be in the grey zone, meaning it may still require a license to ship to China. Analysts from Wells Fargo suggest that while the introduction of these new chips could be viewed positively, investors may question whether Nvidia is being too aggressive in its efforts to circumvent U.S. restrictions. Nvidia currently generates around 25% of its data center chip revenue from China.
The new U.S. restrictions also affect one of Nvidia’s top-of-the-line gaming chips, the RTX 4090. These restrictions took immediate effect on October 24 after U.S. regulators accelerated the original deadline. Prior to the restrictions, Nvidia held over 90% share of China’s $7 billion AI chip market. Now, these curbs may create opportunities for domestic firms like Huawei Technologies to gain market share. Baidu, a Chinese internet giant, reportedly placed a significant order for Huawei AI chips in preparation for a future where purchasing from Nvidia would no longer be possible.
It remains to be seen how Nvidia’s plans to release new AI chips for the Chinese market will be received. As tensions between China and the U.S. continue to escalate in the technology sector, the outcome of these developments could have significant implications for the global chip industry.
(Disclaimer: This article is generated from a syndicated feed and has not been edited by the Devdiscourse staff.)
Frequently Asked Questions (FAQs) Related to the Above News
What is the reason behind Nvidia's decision to release new AI chips specifically for the Chinese market?
Nvidia is releasing new AI chips for the Chinese market in response to the tightened U.S. restrictions on selling high-end AI chips to China.
What are the names of the upcoming Nvidia chips?
The upcoming Nvidia chips are called the HGX H20, L20 PCIe, and L2 PCIe.
When is the potential announcement date for these chips?
The potential announcement date for these chips is November 16.
How do these new chips comply with the new U.S. rules?
The new chips will have reduced computing power measures to comply with the new U.S. rules on exporting high-end AI chips to China.
Has there been any response from the White House or the Commerce Department regarding Nvidia's plans?
The White House and the Commerce Department have not yet responded to requests for comment regarding Nvidia's plans.
Did the previous export rules also affect Nvidia's chip sales in China?
Yes, the previous export rules prevented Nvidia from selling two of its modified advanced AI chips (the A800 and H800) in China.
Are the reported Nvidia chips within the allowed computing power limits under the new U.S. rules?
According to an analysis, the reported Nvidia chips seem to fall below the absolute caps on computing power, except for one chip that is considered to be in the grey zone, potentially requiring a license to ship to China.
How might investors perceive Nvidia's efforts to release new chips for the Chinese market?
Some investors may question whether Nvidia is being too aggressive in its efforts to circumvent U.S. restrictions, although the introduction of these new chips could also be viewed positively.
What percentage of Nvidia's data center chip revenue is currently generated from China?
Nvidia currently generates around 25% of its data center chip revenue from China.
How have the new U.S. restrictions affected Nvidia's gaming chips?
The new U.S. restrictions also affect one of Nvidia's top-of-the-line gaming chips, the RTX 4090.
What opportunities could these restrictions create for domestic Chinese chip manufacturers?
The restrictions may create opportunities for domestic Chinese firms like Huawei Technologies to gain market share in the AI chip market previously dominated by Nvidia.
Has any Chinese company already taken steps to prepare for a future without purchasing Nvidia chips?
Baidu, a Chinese internet giant, has reportedly placed a significant order for Huawei AI chips in preparation for a future where purchasing from Nvidia is no longer possible.
What are the potential implications of Nvidia's release of new AI chips for the Chinese market?
The outcome of these developments could have significant implications for the global chip industry as tensions between China and the U.S. continue to escalate in the technology sector.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
