NVIDIA postpones launch of H20 China-specific AI chip
NVIDIA has informed its Chinese customers about a delay in the launch of its new artificial intelligence (AI) chip, the H20, until early next year, Reuters has reported. The H20 is the most powerful of three China-focused chips NVIDIA has developed to comply with new US export restrictions. This setback could make it harder for the chipmaker to maintain its market share in China against local competitors like Huawei.
Reasons for delay and impact on other chips
The sources reveal that server manufacturers are facing issues integrating the H20 chip, causing the delay. However, the L20, another chip designed to meet US export rules, is still on track for its original launch date. The status of the third chip, the L2, remains unknown.
NVIDIA's strategy amid US export restrictions
NVIDIA hopes its new chips will help maintain the company's market share in China after being prohibited from shipping products like its advanced A800 and H800 AI chips due to tightened US export rules. According to analysis of the chips' specifications by SemiAnalysis, the H20, L20, and L2 include most of NVIDIA's latest AI features but have reduced computing power to comply with American regulations.
Vast opportunities for rivals like Huawei
The export restrictions have opened doors for rivals like Huawei to secure orders that might have otherwise gone to NVIDIA, whose graphics processing units (GPUs) dominate the AI market. Earlier reports from this month state that Chinese internet giant Baidu placed a significant order for Huawei AI chips this year. Sources suggest that Baidu made this decision before the US restrictions were announced, as they anticipated a future without access to NVIDIA products.
