Nvidia plans AI-friendly chips to comply with Chinese market amid U.S. export controls
Date
7/22/2024 8:35:58 AM
(MENAFN) Nvidia is actively working on adapting its new flagship artificial intelligence chips for the Chinese market to ensure compliance with current U.S. export controls, according to three sources familiar with the matter who spoke to Reuters. The renowned AI chipmaker introduced its Blackwell series of chips in March, which are expected to enter mass production later this year. These advanced processors feature two silicon squares, each the size of the company’s previous model. Within this series, the P200 chip is anticipated to be 30 times faster than its predecessor in performing tasks such as delivering answers to bots.
To facilitate the launch and distribution of the new chip, tentatively named the P20, Nvidia plans to collaborate with Inspur, one of its primary distributors in China, according to two of the sources. This strategic move comes in response to Washington's tightening of export controls on advanced semiconductors to China in 2023. The U.S. aims to curb China's progress in supercomputing capabilities that could bolster its military.
Nvidia's current AI chip offering in the Chinese market, the H20, experienced a sluggish start when deliveries commenced this year. The U.S. company had priced the H20 lower than a competing chip from Huawei, as reported by Reuters in May. Despite the slow start, Nvidia is projected to sell over 1 million H20 chips in China within this year, generating revenue exceeding $12 billion, based on estimates from the research group Semi Analogy.
Globally, chip stocks experienced a decline last week following a Bloomberg report indicating that the Biden administration is considering implementing the foreign direct product rule. This measure would empower the United States to halt the sale of products manufactured using American technology, further complicating the global semiconductor market landscape.
MENAFN22072024000045015682ID1108467201
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.