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Nvidia Reportedly to Release New AI Chips for China

The media reported that Nvidia Corporation plans to release three new artificial intelligence chips developed specifically for the Chinese market.

Nvidia Reportedly to Release New AI Chips for China

The decision of the said manufacturer of microcircuits is quite logical and to some extent predictable in the context of the fact that last month the United States government further restricted China’s access to advanced semiconductors by banning the supply of certain American products to this country.

Information released by the media reads Nvidia has developed new artificial intelligence chips based on the design of its flagship microcircuit called H100. According to preliminary data, deliveries of new products from the American giant of advanced technologies to China will begin in the coming days. This information has not yet been officially confirmed. The media refer to their sources, who spoke to journalists on condition of anonymity. For this reason, the question of reliability in this case is in some sense relative. At the same time, it is worth noting that the probability of such a decision by Nvidia is quite realistic and has no signs of invention from the space of an alternative world existing within someone’s imagination.

After the news that the sale of artificial intelligence chips from an advanced American manufacturer for China will begin shortly, the Asian server supplier IEIT Systems Co. reduced the daily limit by 10%.

Nvidia has not yet provided any comments in response to a media request for information about three new microcircuits designed for the Chinese market and to avoid restrictions imposed by the US government to influence the technological potential of Beijing.

The share price of the mentioned company has been showing a negative dynamic in recent months. This happened after the administration of US President Joe Biden stepped up its efforts to counter the process of supplying advanced artificial intelligence chips to China. As part of the relevant measures, restrictions were imposed on microcircuits AI, which were originally developed for the market of the mentioned Asian country. Against the background of these actions of the administration of the American president, Nvidia warned that such bans could become a factor of negative impact on the development of its products and the ability to supply high-tech goods to customers.

The October restrictions imposed by Washington were aimed primarily at Nvidia A800 and H800 series GPUs. These products were created after the United States imposed restrictions on the supply of machine intelligence accelerators to China in 2022. Washington explained this decision with concerns that Beijing could use advanced developments to modernize its armed forces.

As part of the new export control rules, Nvidia is not able to supply even its first-class RTX 4090 gaming graphics card to China. For the company, these restrictions are a sensitive factor affecting its economic condition.

Nvidia’s interest in being able to sell its products in China is because this country is the world’s largest semiconductor market. The company, stating the likelihood of affecting restrictions on its production activities, at the same time claimed that there were no prospects of negative financial consequences as a result of measures imposed by Washington. According to experts, this is rather an attempt to demonstrate optimism in its actual absence, rather than a real assessment of the current state of affairs against the background of the decisions of the leadership of the United States.

The media reported that as a result of the export control rules, Nvidia may be forced to cancel orders worth billions of dollars from Chinese technology firms. The optimistic statement of the manufacturer of artificial intelligence chips may be an attempt to create something like an image base to maintain market positions against the background of unfavorable news. But this is just a guess.

There is also information that Intel plans to release a new machine intelligence chip specifically for the Chinese market. This was reported by the media. Intel, like Nvidia, has not yet provided any comments on the news about the intention to create an artificial intelligence chip for shipments to China.

As we have reported earlier, Technical Director of Microsoft Says About Improving Supply of Nvidia’s AI Сhips.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.