More chips for China despite US restrictions

Nvidia plans to introduce three new AI chips for the Chinese market, following US export restrictions on certain AI and gaming chips

It has been announced that Nvidia is planning to release three new chips for the Chinese market, according to local media reports on Thursday. This comes weeks after the US government blocked the company from selling two high-end AI chips and one of its top gaming chips to Chinese firms. 

The three new chips, called the HGX H20, L20 PCIe, and L2 PCIe, could be announced as early as November 16th, Reuters reported, citing local news outlet STAR Market.

In October, the US updated its export restrictions to curb sales of Nvidia's A800 and H800 chips to China, as part of its efforts to restrict China's access to advanced semiconductor technology. It was also reported that one of the company’s top gaming chips, L40S, would be affected. 

Regrettably, Nvidia's stock price then took a sharp dive after the new restrictions were imposed on the sale of AI chips to China, including chips designed specifically for the Chinese market.

US-China tech rivalry

In August 2023, US President Biden imposed new export controls on China, aimed at restricting its development of surveillance technologies and tightening regulations in key industries such as AI, semiconductors, and quantum computing. 

The move was likely to have a significant impact on global business, as other countries have warned that severe restrictions could damage their economies. The US-China tech rivalry is heating up, with semiconductors and AI emerging as key battlegrounds.

Billions of orders to be affected

Due to the new US export control rules, Nvidia is now unable to ship its flagship RTX 4090 gaming graphics card to China. Nvidia has said that it does not expect to see a financial impact from the restrictions in the short term, but reports suggest that it may have to cancel billions of dollars in orders from Chinese tech firms.

Nvidia has dominated China's US$7bn AI chip market with over 90% share, but analysts say US restrictions could help provide opportunities for plays such as Huawei Technologies. 

Earlier this week, reports surfaced that Chinese internet search giant Baidu had ordered 1,600 of Huawei's 910B Ascend AI chips, which were developed as an alternative to Nvidia's A100 chip, for 200 servers.

******

For more insights into the world of AI - check out the latest edition of AI Magazine and be sure to follow us on LinkedIn & Twitter.

Other magazines that may be of interest - Technology Magazine | Cyber Magazine.

Please also check out our upcoming event - Net Zero LIVE on 6 and 7 March 2024.

******

BizClik is a global provider of B2B digital media platforms that cover Executive Communities for CEOs, CFOs, CMOs, Sustainability leaders, Procurement & Supply Chain leaders, Technology & AI leaders, Cyber leaders, FinTech & InsurTech leaders as well as covering industries such as Manufacturing, Mining, Energy, EV, Construction, Healthcare and Food.

BizClik – based in London, Dubai, and New York – offers services such as content creation, advertising & sponsorship solutions, webinars & events.

Share

Featured Articles

Apple to Cancel Long-Term EV Project in Favour of AI

According to multiple reports, tech giant Apple is phasing out its self-driving electric car project to refocus efforts on the AI division of its business

Data Centre Companies Seek Energy-Saving Solutions due to AI

A continued explosion in global AI demand is causing data centre companies to report a shortage of space across Europe, leading to expansion difficulties

The Dangers of AI Bias: Understanding the Business Risks

As Google seeks to fix AI bias issues within Gemini, concerns over AI and machine learning biases remain as developers consider combatting inaccuracies

Fujitsu to Combat 5G+ Network Complexities with AI

Machine Learning

MWC Barcelona 2024: The Power of AI in the Telco Industry

Technology

Upskilling Global Workers in AI with EY’s Beatriz Sanz Saiz

AI Strategy