Active Stocks
Mon Mar 04 2024 15:59:52
  1. Tata Steel share price
  2. 153.10 -1.32%
  1. NTPC share price
  2. 353.80 3.50%
  1. Bharti Airtel share price
  2. 1,137.00 0.57%
  1. Larsen & Toubro share price
  2. 3,643.95 -0.28%
  1. Power Grid Corporation Of India share price
  2. 294.45 2.63%
Business News/ Companies / News/  Nvidia delays launch of new AI chip in China amid US export rules
BackBack

Nvidia delays launch of new AI chip in China amid US export rules

Touted as the most potent among three China-targeted chips developed by Nvidia, the H20 faces a setback in its market debut. This delay may potentially impact Nvidia's competitive stance in China against local contenders such as Huawei

File: Nvidia had expected to launch its new AI chip H20 by November 16 (REUTERS/Dado Ruvic/Illustration/File Photo)Premium
File: Nvidia had expected to launch its new AI chip H20 by November 16 (REUTERS/Dado Ruvic/Illustration/File Photo)

Nvidia has informed its Chinese customers about a delay in the release of a new artificial intelligence (AI chip, as per a Reuters report citing sources. The chip, known as H20 is among a range of new products designed by the California-based chip giant to comply with tightened United States export regulations, it added.

Touted as the most potent among three China-targeted chips developed by Nvidia, the H20 faces a setback in its market debut. This delay may potentially impact Nvidia's competitive stance in China against local contenders such as Huawei, as per the report.

Also Read: Nvidia's AI boom almost blows past politics

Launch Rescheduled

While it was earlier expected to be unveiled as early as November 16, the H20's launch has been rescheduled for the first quarter of next year, sources told Reuters. One source hinted that the launch might occur in February or March.

Sources revealed that the postponement stemmed from challenges faced by server manufacturers in integrating the H20 chip into their systems. Alongside the H20, Nvidia has been strategising the launch of two other chips, the L20 and L2, to comply with the revised US export regulations. While the L20 remains unaffected by delays and is set for its original schedule, information regarding the status of the L2 remains undisclosed.

Also Read: Nvidia share price falls on downbeat China sales outlook

Nvidia has declined to comment, the report added.

Impact on Market Strategy

Nvidia's reliance on these chips as a means to retain its market presence in China became crucial after it was restricted from shipping products to China, including the advanced A800 and H800 AI chips, due to Washington's tightened export regulations.

Introduced as alternatives for Chinese consumers in November 2022, the H20, L20, and L2 incorporate many of Nvidia's latest AI features but have seen reductions in computing power to align with the new US regulations, as reported by SemiAnalysis.

Also Read: How Nvidia got huge and almost invincible

However, the export restrictions have provided openings for competitors such as Huawei to seize orders that would typically have been bagged by Nvidia. Case in point: Chinese tech giant Baidu reportedly placed a substantial order for Huawei AI chips, a move speculated to have occurred prior to the US export constraints, foreseeing potential limitations in procuring from Nvidia in the future.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 25 Nov 2023, 09:35 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie