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Nvidia is making a new version of its flagship AI chip for China

July 24, 2024
in News
Nvidia is making a new version of its flagship AI chip for China
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Nvidia is developing a China-specific version of its flagship artificial intelligence chips, aiming to comply with stringent US export controls, according to Reuters. The AI chip giant is working with Inspur, a key distribution partner in China, on the new chip tentatively named B20. This chip is said to be an offshoot of the B200, part of the recently unveiled Blackwell series, which boasts speeds 30 times faster than its predecessor. The B20 is expected to begin shipments in the second quarter of 2025.

Nvidia’s decision to develop the B20 follows the potential ban of its H20 chip from sale to China when the US reviews its export controls in October this year, according to Quartz, citing a research note published by Jefferies analysts.

The H20 chip was launched earlier this year and has seen significant sales growth in China. According to the Financial Times, Nvidia is on track to sell over a million H20 chips in China this year, potentially generating more than USD 12 billion in revenue. This comes after Nvidia lowered the H20’s price to compete with Huawei’s Ascend 910B, selling at a 10% discount to clear its supply.

China accounted for 17% of Nvidia’s revenue in the fiscal year ending January, underscoring the market’s importance. Forecasts indicate that China will represent over 30% of the global AI industry by 2035, according to a report by Chinese market research firm CCID Consulting. This highlights the strategic significance of Nvidia’s efforts to maintain its market share.

In response to the tightened US export controls introduced in 2023 to curb advancements in China’s military supercomputing capabilities, Nvidia has created three chips specifically for the Chinese market. The US is expected to continue tightening export controls on semiconductor technology to China, with further restrictions on chip making equipment from the Netherlands and Japan being discussed.

Additionally, the Biden administration is considering implementing guardrails for advanced AI models and possibly the foreign direct product rule to restrict products made with US technology.

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Copyright for syndicated content belongs to the linked Source : KrAsia – https://kr-asia.com/nvidia-is-making-a-new-version-of-its-flagship-ai-chip-for-china

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