Nvidia H200 AI chips export will soon begin in China, but before that, the US is seemingly planning a big twist in this sales move. It is considering limiting the advanced AI semiconductors to 75000 units per Chinese customer or company.
If this move comes into action, it might further hinder the US chipmaker’s re-entry into one of its most important markets. How? Let’s find out in the latest news.
Bloomberg reported that the US is looking to twist the Nvidia AI chips export to China by offering only 75000 units of H200 to a Chinese firm. A chip named MI325 by Advanced Micro Devices with similar tech traits may also follow the same count.
Now that’s actually half of what companies like Alibaba and ByteDance have been trying to purchase from Nvidia. These firms haven’t responded to this matter yet.
Following the news, Nvidia shares hit a decline in the trade market by 1% to a low of $181. But the question is, how can this number affect Nvidia’s presence in China?
The new “limitation per customer” rule will impact Nvidia’s chip sales in the Chinese market. The company hasn’t yet entered China’s boundaries with its semiconductors. At such a point, the new regulation can further push off the chipmaker.
NVIDIA already mentioned that it’s still not getting any data center revenue from China and has no clue if Beijing will allow imports even if the US does.
Jensen Huang, the CEO of Nvidia, is making efforts to keep China hooked on US technology, as that will prevent Huawei from rising more in the AI industry. Though the US seems not to favor this statement much, as it believes the exports will, anyway, help China to develop more powerful AI techs against America.
US further considers that volume is an important factor. Even lower than the planned figure can allow China to craft one of the world’s largest supercomputers, when clustered together. Let’s see how this matter will proceed in the time ahead.
(Image Credits: Huawei)
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