Amidst the labyrinth of global AI commerce, NVIDIA is on the brink of unveiling novel AI processors tailored explicitly for the expansive Chinese market, sidestepping the intricate web of US export restrictions. Insider sources suggest that these novel chips are deliberately engineered to wield a prowess slightly subdued compared to their American counterparts.
The tech giant, NVIDIA, harbors an earnest desire to maintain an unimpeded presence in the colossal realm of China's AI chip market. In response to the latest US export restrictions, which cast shadows over the supply chain, the company is diligently crafting three distinct AI chips for the Chinese landscape. Esteemed publications such as Engadget, The Wall Street Journal, and Reuters offer insights into this strategic move. The preceding year witnessed a notification from the US government, outlining restrictions on exporting computer chips, particularly those destined for supercomputers and AI applications, to nations like Russia and China. The primary concern was the potential militaristic application of these components. Consequently, NVIDIA faced constraints in vending specific A100 and H100 chips in the Chinese market, prompting the development of A800 and H800 chips tailored explicitly for this demographic.
However, the regulatory landscape shifted recently, with the US government imposing updated restrictions, placing constraints on the computational potency allowable for chips intended for export to the aforementioned nations. Consequently, the A800 and H800, alongside other NVIDIA products, including the preeminent RTX 4090 consumer GPU, found themselves excluded under these novel regulations. There are even speculations circulating that the company might be compelled to nullify advanced chip orders amounting to over $5 billion in China.
The newly fashioned chips designated for the Chinese market bear nomenclatures such as HGX H20, L20, and L2, as per the specifications disseminated to distributors. Although the H20 emerges as the most formidable among the trio, none surpass the computational threshold dictated by the recent US export rules. This implies that entities employing these chips for AI applications might need a larger quantity to compensate for the diminished specifications compared to higher-tier models.
In anticipation of a prospective future where chip imports from the US and other nations may cease, Chinese entities like Baidu, Huawei, Xiaomi, and Oppo have commenced indigenous semiconductor design endeavors. Nevertheless, loyal patrons of NVIDIA may be inclined to adhere to the company's offerings due to its reputable standing and robust AI development software, touted as among the most resilient in the field. Sources intimate that NVIDIA might officially unveil these cutting-edge chips around November 16, with sales commencing before the year's denouement.