Singapore/Beijing: Nvidia has told customers in China it is delaying the launch of a new artificial intelligence chip it says is designed to comply. US export The rules are due by the first quarter of next year, two sources familiar with the matter said.
The delayed chip is the H20, the most powerful of three China-focused chips Nvidia is developing to comply with fresh US export restrictions, the sources said, and its efforts to retain market share in China against local rivals such as Huawei. Can make it complicated.
Chip industry newspaper Semianalysis reported this month that the California-based AI chip giant was expected to launch new products as early as November 16.
However, the H20 launch has now been pushed back to the first quarter of next year, sources said, with one saying they were advised it could be in February or March.
Both sources declined to be named as the information is confidential. Nvidia declined to comment.
The sources said they were told the H20 was being delayed due to problems being faced by server manufacturers integrating the chip.
In addition to the H20, Nvidia is planning two other chips to comply with new US export regulations – L20 and L2. Sources said the L20 is not facing delays and will launch as per its original schedule. They were unable to share information about the status of L2.
Nvidia is betting on the chips to help maintain its market share in China after Washington’s stringent export rules barred it from shipping products including its advanced A800 and H800 AI chips.
The A800 and H800 were introduced as options for Chinese customers in November 2022, about a month after the US first banned exports of advanced microchips and devices to China.
According to SemiAnalysis’s analysis of the chips’ specifications, the H20, L20 and L2 include most of Nvidia’s latest features for AI work, but some of their computing power measures have been cut to comply with new US regulations.
US export restrictions have created an opportunity for rivals like Huawei to win orders that otherwise might have gone to Nvidia, whose graphics processing units (GPUs) dominate the AI market.
Chinese internet giant Baidu has placed a huge order for Huawei AI chips this year, Reuters reported this month, citing sources. One source said Baidu did this before the US sanctions were announced as it was preparing for a future when it would not be able to purchase from Nvidia.
The delayed chip is the H20, the most powerful of three China-focused chips Nvidia is developing to comply with fresh US export restrictions, the sources said, and its efforts to retain market share in China against local rivals such as Huawei. Can make it complicated.
Chip industry newspaper Semianalysis reported this month that the California-based AI chip giant was expected to launch new products as early as November 16.
However, the H20 launch has now been pushed back to the first quarter of next year, sources said, with one saying they were advised it could be in February or March.
Both sources declined to be named as the information is confidential. Nvidia declined to comment.
The sources said they were told the H20 was being delayed due to problems being faced by server manufacturers integrating the chip.
In addition to the H20, Nvidia is planning two other chips to comply with new US export regulations – L20 and L2. Sources said the L20 is not facing delays and will launch as per its original schedule. They were unable to share information about the status of L2.
Nvidia is betting on the chips to help maintain its market share in China after Washington’s stringent export rules barred it from shipping products including its advanced A800 and H800 AI chips.
The A800 and H800 were introduced as options for Chinese customers in November 2022, about a month after the US first banned exports of advanced microchips and devices to China.
According to SemiAnalysis’s analysis of the chips’ specifications, the H20, L20 and L2 include most of Nvidia’s latest features for AI work, but some of their computing power measures have been cut to comply with new US regulations.
US export restrictions have created an opportunity for rivals like Huawei to win orders that otherwise might have gone to Nvidia, whose graphics processing units (GPUs) dominate the AI market.
Chinese internet giant Baidu has placed a huge order for Huawei AI chips this year, Reuters reported this month, citing sources. One source said Baidu did this before the US sanctions were announced as it was preparing for a future when it would not be able to purchase from Nvidia.
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