Chinese companies are showing resistance to acquiring NVIDIA’s new AI chips designed to comply with stricter US regulations. According to reports, major players like Alibaba and Tencent have refused to purchase NVIDIA’s cut-down H20 and L20 GPUs, citing their significantly degraded performance compared to the original chips. Instead, they are turning to Huawei’s AI offerings, which are seen as more suitable for workloads requiring low-to-mind inferencing power.
Despite NVIDIA’s previous success in penetrating the Chinese market with its Hopper H100 AI chip, the recent portfolio does not seem to be well-received due to its compliance with US policies. Chinese firms are now exploring alternatives that can better cater to their needs and local regulations.
Chinese manufacturers like Huawei are gaining momentum in this space. It is reported that Huawei has already received orders for up to 5,000 units of its Ascend 910B AI chip. While this may not be a large number, it highlights the growing competition NVIDIA faces in the Chinese market.
This development could create opportunities for other players like AMD and Intel, who are also working on AI chips specifically tailored for the Chinese market. However, they may encounter similar restrictions due to their US-based origins. In addition, Huawei’s in-house solutions are becoming more mature, making them a viable alternative to NVIDIA.
As US policies remain uncertain, Chinese giants are preparing for the future by prioritizing local manufacturers over international suppliers like NVIDIA. This shift in preference could pose significant challenges for NVIDIA’s market share in China.
The situation calls for NVIDIA to reassess its approach and align its AI offerings more effectively with the demands of the Chinese market. Failure to do so may result in further loss of traction to competitors like Huawei and hinder NVIDIA’s progress in AI innovation.
The source of the article is from the blog trebujena.net