Nvidia is also developing two other chips for the Chinese market, the L20 and L2. According to Reuters, one of the chips, L20, is expected to be released according to its original schedule without any delays.
California-based AI chip giant Nvidia Corp (NASDAQ: NVDA) has informed Chinese customers that the launch of its new artificial intelligence chip H20, designed to comply with the latest U.S. export regulations, will be delayed, Reuters reported on Friday. , citing two sources familiar with the matter.
The country’s tightened export rules have already restricted Nvidia from shipping some of its high-end products, including its A800 and H800 AI chips, to China. In response, the company launched alternatives in November 2022 in the form of the A800 and H800, specifically tailored for Chinese customers.
Now the tech giant is developing three additional chips, including the H20, which is touted as the most powerful of the three and designed explicitly for the Chinese market under new US export rules.
delayed release
According to Reuters, the company delayed the launch of the product to customers in China. The chip was initially expected to launch as early as November 16. However, the release schedule has been changed to the first quarter of next year, possibly in February or March. The delay could complicate the company’s efforts to maintain market share in a region where it faces stiff competition from local players such as Huawei.
People familiar with the matter noted that the delays are due to challenges server manufacturers are facing while integrating semiconductors into their products.
Nvidia is also developing two other chips for the Chinese market, the L20 and L2. According to Reuters, one of the chips, L20, is expected to be released according to its original schedule without any delays. However, details about the status of L2 have not yet been released.
All this news seems not very encouraging to investors, causing the stock price to fall. NVDA shares were down 1.16% at $481.49.
Graphcore withdraws from Chinese market
While Nvidia adjusts its AI chips to comply with new US export regulations for the Chinese market, UK-based competitor Graphcore has decided to strategically withdraw from the Chinese market. The company is withdrawing from the Chinese market and laying off a significant portion of its workforce.
A Graphcore spokesperson confirmed the decision, saying it was directly attributable to recent U.S. export controls restricting technology sales to China.
In an emailed statement, a spokesperson expressed regret over the need to scale back operations in China but did not disclose the exact number of employees affected by the decision.
“The need for AI computing continues to grow elsewhere, and Graphcore is working with customers around the world to meet the demand for powerful, cost-effective alternatives to GPUs,” a Graphcore spokesperson said, referring to the powerful graphics chips released by Nvidia. “We are cooperating,” he said. And others make it.
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