Nvidia, the U.S. chipmaker, is set to increase production of its artificial intelligence (AI) chips designed for the Chinese market in the second quarter of 2024. The mass production comes in compliance with U.S. export rules and aims to cater to the growing demand for AI technology in China.
The H20 chip, which is the most powerful among the three China-focused chips developed by Nvidia, was originally scheduled for launch last year but faced delays due to integration issues with server manufacturers. Despite the delay, Nvidia plans to start production soon, but the initial volume will be limited, with the company primarily fulfilling orders for major customers.
Although Chinese companies have expressed reluctance to purchase the downgraded H20 chip, fearing further restrictions, Nvidia remains confident in the demand for its products. In fact, search engine leader Baidu had already shifted its allegiance towards Huawei Technologies for AI chips last year.
In addition to the H20 chip, Nvidia has plans for two other chips, the L20 and L2, which are also designed to comply with the new export restrictions. However, no announcements have been made regarding the sale of any of these three chips.
The U.S. export restrictions imposed in November 2022 have hindered Nvidia’s ability to ship its advanced A800 and H800 AI chips to China. To address this issue, Nvidia introduced the A800 and H800 chips as alternatives for Chinese customers, but the computing power had to be reduced in order to comply with the new rules.
Nvidia is banking on its China-focused AI chips to maintain its market share in the country amidst tightening export regulations. These chips, while featuring most of Nvidia’s newest AI capabilities, have been modified to align with the restrictions.
As the demand for AI technology continues to rise in China, Nvidia’s increased production of its China-focused AI chips is a strategic move to cater to the growing market and overcome the challenges posed by regulatory constraints.
The source of the article is from the blog xn--campiahoy-p6a.es