Nvidia Delays Launch of China-Focused H20 AI Chip Amid U.S. Export Rules

Nvidia postpones the launch of its H20 AI chip in China to comply with U.S. export regulations, impacting its market strategy.

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Nvidia Postpones H20 Chip Launch in China

Nvidia, the renowned AI chip giant, has recently announced a delay in the launch of its new H20 artificial intelligence chip in China. This decision aligns with the need to comply with the latest U.S. export regulations. Originally expected to be launched as early as November 16, 2022, the H20 chip's release has now been pushed to the first quarter of the next year. This chip is particularly significant as it is the most powerful among the three China-focused chips developed by Nvidia.

Key Points

  • Nvidia delays the launch of its H20 AI chip in China, originally scheduled for November 2022.

  • The delay is due to the need to comply with new U.S. export rules and challenges in chip integration by server manufacturers.

Impact on Nvidia's Market Strategy

The delay of the H20 chip presents a significant challenge for Nvidia's market presence in China. The company has been striving to maintain its market share against local rivals, such as Huawei, in the wake of U.S. export restrictions. These restrictions barred Nvidia from shipping advanced A800 and H800 AI chips to China. As a response, Nvidia introduced the H20, L20, and L2 chips, designed with reduced computing power to comply with U.S. regulations. However, with the H20's delay, Nvidia faces a precarious situation in preserving its dominance in the Chinese AI market.

Broader Market Implications

The U.S. export curbs have inadvertently opened doors for Nvidia's rivals, particularly Huawei. Baidu, the Chinese internet giant, has reportedly placed significant orders for Huawei's AI chips, foreseeing a future where it might not be able to rely on Nvidia's products due to these export restrictions. This development underscores the growing competition in the AI chip market and the geopolitical implications influencing it.

Read the full story at Reuters and DNyuz.

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