Can Nvidia’s New AI Chip Help It Dominate The Chinese Market?
By TD NewsDesk
Updated on Mon, Jan 8, 2024
As a result, chip manufacturers are trying to find ways to ride this wave by developing advanced AI chips. Furthermore, this competitiveness has expanded to governments, as they scramble to ensure responsible development of AI technologies.
Hence, the last few years have seen restrictions being placed by governments on AI companies, especially on the export of powerful AI chips. One such restriction comes from the US, which enacted measures on ban the export of AI chips to China, which drew pushback from China in banning the export of key materials used in manufacturing high-tech AI chips.
This has led many international AI chip manufacturers to realign their product offerings specifically for the major market of China.
Keeping up with this trend, Nvidia has some exciting news. What’s it all about? Let’s explore!
What Did Nvidia Say About Its New AI Chip?
According to two people close to the situation, who declined to be identified as the information shared was confidential, Nvidia plans to begin mass production of an AI chip designed specifically for China that complies with export regulations.
Nvidia’s product offering for China includes 3 AI chips, one of which is called H20 and is the most powerful.
While the chip was originally scheduled to be launched last November, it’s believed it was delayed due to server manufacturers having issues with integrating the chip.
Further on, the initial production volume is said to be low, with Nvidia fulfilling orders for major customers at first.
The other two chips that Nvidia has planned that comply with restrictions include the L20 and L2.
While these chips contain most of Nvidia’s newest features for AI workloads, they come with reduced computing power to cater to requirements.
The move comes as Nvidia is trying to preserve its market share in China, after US regulations barred the company from exporting its advanced A800 and H800 AI chips.
These two chips were brought in as alternatives around a month after earlier AI chip export restrictions brought in by the US in November 2022.
- Nvidia declined to comment on the matter.
What Else Did Nvidia Do?
At the end of December 2023, Nvidia launched a modified version of one of its gaming chips that complies with the US’s export requirements.
The chip, which is scheduled to be available to customers in China in January 2024, is said to offer a “quantum leap in performance, efficiency and artificial intelligence-driven graphics,” according to the company.
Speaking about it, a spokesperson for Nvidia said, “The GeForce RTX 4090 D has been designed to fully comply with U.S. government export controls. While developing this product, we extensively engaged with the U.S. government.”
The RTX 4090 D is the first chip Nvidia has launched since the new export rules outlined in October 2023, which also blocked its predecessor, the RTX 4090.
According to the spokesperson, the RTX 4090 D is “5% slower in gaming and creating”.
Do you think other chip manufacturers will follow in Nvidia’s footsteps and alter their products to ensure they can maintain their market share? Will Nvidia maintain their previously held 90% share in China’s $7 billion chip market?
Let us know in the comments below!
First published on Mon, Jan 8, 2024
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