In a strategic move to comply with US export regulations, Nvidia, the US chipmaker, is preparing for mass production of its H20 artificial intelligence (AI) chip in the second quarter of 2024, specifically targeting the Chinese market.
As reported by Reuters, this initiative by Nvidia is a response to navigate and adhere to the restrictions outlined in October. Originally scheduled for launch in November, delays occurred due to integration challenges faced by server manufacturers.
The H20 chip, considered the most powerful among the three designed for China, will undergo limited initial production, with a primary focus on fulfilling major customer orders.
However, Chinese companies reportedly express reluctance in purchasing the downgraded H20, exploring domestic alternatives amid concerns that the US might further tighten restrictions. Last year, Baidu, a leading search engine company, chose AI chips from Huawei Technologies, indicating a shift away from Nvidia.
The other two chips designed to comply with the new restrictions, namely the L20 and L2, are also part of Nvidia’s strategy, with sales announcements pending.
In late December, Nvidia launched a modified version of an advanced gaming chip, demonstrating its commitment to preserving its market share in China amid tightened export regulations.
Nvidia’s A800 and H800 AI chips, initially introduced as alternatives for Chinese customers in November 2022, faced shipping restrictions due to tightened US export regulations. In response, Nvidia’s H20, L20, and L2 chips aim to incorporate most of the company’s cutting-edge AI features while adhering to computing power reductions mandated by the new rules.
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