NVIDIA making China-specific chips in compliance with US export restrictions
What's the story
NVIDIA's CEO, Jensen Huang, confirmed on Wednesday their commitment to creating new products that comply with strict US government rules for exporting top-notch chips to China, reported Reuters. Experts anticipate that stricter US restrictions on chip exports could pave the way for Chinese competitors to gain ground in the industry. NVIDIA has till now commanded over 90% of China's $7 billion AI chip market.
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NVIDIA working closely with US governmentÂ
"NVIDIA has been working very closely with the US government to create products that comply with its regulations," Huang mentioned at a press event in Singapore. "Our plan now is to continue to work with the government to come up with a new set of products that comply with the new regulations that have certain limits," Huang said.
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Big investments in Singapore on the horizon
During Wednesday's media briefing, Huang also mentioned ongoing talks with Singapore regarding possible big investments. He also said that NVIDIA is working with Singapore to help develop its own large language model, Sealion. Meanwhile, on Monday, Singapore's Infocomm Media Development Authority (IMDA) unveiled a $52 million initiative to create the first major language model in Southeast Asia.
Insights
20% of NVIDIA's revenue comes from China
Huang mentioned that historically, about 20% of NVIDIA's revenue comes from China, but it's uncertain how much that might shift due to the new US export rules. In their November earnings report, the company cautioned about a big decline in fourth-quarter sales in China due to the impact of the fresh US regulations.