Nvidia, the renowned American chipmaker, is making significant strides in the development of an artificial intelligence (AI) chip exclusively designed for the Chinese market. Sources familiar with the matter have indicated that mass production of this chip, known as H20, is scheduled to commence in the second quarter of 2024.
The H20 chip has been specifically crafted to meet the restrictions imposed by the United States in October. It is considered the most powerful among three chips developed by Nvidia to fulfill these requirements. However, the initial launch of the H20 chip faced a delay due to integration issues encountered by server manufacturers.
While the production volume will initially be limited, Nvidia intends to prioritize fulfilling orders for its major customers. Although these sources remain anonymous to protect the confidentiality of the information, Nvidia has refrained from making any comments on the matter.
Reuters previously reported that Chinese companies have hesitated to purchase the downgraded H20 chip and are instead exploring domestic alternatives, fueled by concerns over potential tightening of U.S. restrictions. Baidu, China’s leading search engine, has reportedly shifted its preference to AI chips from Huawei Technologies as a result.
In addition to the H20 chip, Nvidia has plans to introduce two other chips, namely L20 and L2, both of which comply with the newly imposed restrictions. However, the chipmaker has not made any official announcements regarding the sale of these three chips.
Nvidia has been actively adjusting its strategy to conform to the new regulations. In late December, the company launched a modified version of an advanced gaming chip to adhere to the rules. These chips represent key assets for Nvidia to maintain its market share in China, as the company faced export restrictions on products such as the A800 and H800 AI chips.
Research conducted by SemiAnalysis has revealed that the H20, L20, and L2 chips integrate most of Nvidia’s cutting-edge AI features, albeit with reduced computing power mandated by the new regulations. Through these developments, Nvidia demonstrates its commitment to the Chinese market while navigating the complexities of international trade restrictions.
The source of the article is from the blog toumai.es