Nvidia Delays Launch of New China-Focused AI Chip

Nvidia, the California-based AI chip giant, has informed its customers in China that it is postponing the release of a new artificial intelligence chip designed to comply with U.S. export regulations.

Credit: REUTERS

The chip, known as H20, was expected to be launched as early as November 16 but has now been delayed until the first quarter of next year, according to sources familiar with the matter.

The H20 chip is part of Nvidia's efforts to comply with the fresh U.S. export restrictions and maintain its market share in China. However, the delay could complicate its competition against local rivals like Huawei. The sources, who requested anonymity due to the confidential nature of the information, revealed that the delay is attributed to integration issues faced by server manufacturers.

In addition to the H20 chip, Nvidia has been working on two other chips, L20 and L2, to comply with the new U.S. export rules. The sources mentioned that the L20 chip is not facing any delays and will be launched according to the original schedule. However, they were unable to provide information on the status of the L2 chip.

Nvidia's A800 and H800 AI chips were introduced as alternatives for Chinese customers after the U.S. imposed export restrictions on advanced microchips and equipment to China. The H20, L20, and L2 chips, while incorporating Nvidia's latest AI features, have had some computing power measures reduced to comply with the new U.S. rules.

The delay in launching the H20 chip provides an opportunity for competitors like Huawei to secure orders that would have otherwise gone to Nvidia. Chinese internet giant Baidu has reportedly placed a significant order for Huawei AI chips, anticipating a future where purchasing from Nvidia may no longer be possible due to export restrictions.

Nvidia declined to comment on the delay, and the sources emphasized that the information shared was confidential.

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• Nvidia has postponed the launch of its new China-focused AI chip, H20, until the first quarter of next year.

• The delay is attributed to integration issues faced by server manufacturers.

• The L20 chip is not facing any delays and will be launched as planned.

Source: REUTERS