Nvidia to Delay Rewamped AI Chip for Chinese Tech Market

by Alisa Davidson

Published: November 24, 2023 at 4:52 am Updated: November 24, 2023 at 4:53 am

by Victor Dey

Edited and fact-checked:
November 24, 2023 at 4:52 am

In Brief

Nvidia delays the release of most powerful AI chip designed for China to comply with US regulations

Nvidia to Delay Rewamped AI Chips for Chinese Tech Market

Nvidia has announced to its customers in China the postponement of the release of the new artificial intelligence chip, HGX H20, designed to adhere to US restrictions. The launch is now rescheduled for the first quarter of 2024. The delay was attributed to challenges faced by server manufacturers in the chip integration process.

The delayed chip, HGX H20, represents the most powerful among the three chips developed for the Chinese market, which also includes the L20 PCIe and L2 PCIe. The original schedule for the launch of L20 PCIe is expected to remain unchanged.

US Introduces Stricter Regulations on Chips for China, Nvidia Adjusts Chip Offerings

Earlier this week, Nvidia introduced a new line of chips designed explicitly for the Chinese market in light of the recently implemented, more rigorous regulations governing the sale of high-end AI chips to China by US officials.

These regulations set boundaries on the computing power a chip can have within a specific size constraint. Furthermore, there is a “grey zone”, where chips might still qualify for shipment to China but necessitate a licence for approval.

While the new chips incorporate most of Nvidia’s cutting-edge features for AI work, some of their computing power measures have been scaled down to align with the restrictions imposed by US export rules.

Nvidia Faces Challenges Competing for Dominance in Chinese Market

Last month, the leading US AI chip giant, renowned for its graphics processing units that dominate the AI market, announced that recent export restrictions would hinder the sale of two of its enhanced AI chips—the A800 and H800. Both were initially tailored for the Chinese market to adhere to the previous export regulations.

The new US export restrictions have posed challenges for the company, opening an opportunity for competitors like Huawei to secure orders that might otherwise have been directed towards Nvidia.

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About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson