Nvidia is reportedly planning to release three new chips for the Chinese market, following the U.S. ban on selling two high-end AI chips and a top gaming chip to Chinese firms. The new chips, known as HGX H20, L20 PCIe, and L2 PCIe, are expected to be announced as early as November 16. This move comes after the U.S. implemented export restrictions that would prevent Nvidia from selling certain advanced AI and gaming chips to China.
The U.S. export restrictions have had significant implications for Nvidia, as the company previously held over 90% of China’s $7 billion AI chip market. With the new restrictions in place, Chinese firms like Huawei Technologies are expected to take advantage of the situation and potentially gain market share. In fact, sources have reported that Chinese internet giant Baidu has already placed a substantial order for Huawei AI chips in anticipation of not being able to purchase from Nvidia in the future. This development highlights the impact of geopolitical tensions on the global tech industry and the shifting dynamics within the AI chip market.
The release of these new chips by Nvidia reflects the company’s efforts to navigate the changing regulatory landscape and maintain its presence in the Chinese market. As the trade war between the U.S. and China continues to impact tech companies, it remains to be seen how these developments will shape the future of AI chip manufacturing and distribution in the region.