Nvidia, the U.S. chipmaker, is preparing to release a China-focused artificial intelligence (AI) chip in the second quarter of 2024, according to sources familiar with the matter. The H20 chip, which is part of a series of chips developed by Nvidia to comply with U.S. export regulations, was initially scheduled for release in November but was delayed due to integration issues faced by server manufacturers.
The production of the H20 chip will begin in limited volume, with Nvidia primarily fulfilling orders from major customers. This move is in response to restrictions announced in October, which have made Chinese companies reluctant to purchase the downgraded H20 chip. Some Chinese companies have started exploring domestic alternatives amid concerns that the U.S. may further tighten restrictions. For example, search engine leader Baidu has shifted to ordering AI chips from Huawei Technologies.
In addition to the H20 chip, Nvidia has plans to develop two other chips, the L20 and L2, which also comply with the new regulations. However, the chipmaker has not yet announced the sale of any of these three chips.
Nvidia’s focus on developing chips for the Chinese market comes as a response to tightening U.S. export restrictions that prevented the company from shipping its advanced A800 and H800 AI chips. These chips were introduced last year as alternatives for Chinese customers, but the new H20, L20, and L2 chips have computing power scaled back in order to comply with the latest regulations.
Nvidia’s entrance into the Chinese market with its AI chips is seen as a strategic move to maintain its market share, as AI technology continues to gain prominence in various industries. By offering specially designed chips that meet export regulations, Nvidia aims to solidify its position as a leading AI chip provider in China.
The source of the article is from the blog revistatenerife.com