From Nasdaq, Inc.:

U.S. chipmaker Nvidia plans to mass produce an AI chip designed for China in the second quarter of 2024 to comply with U.S. export rules. The H20 chip, originally scheduled for launch last November, will have limited initial production with orders for major customers.

Reuters reported Chinese companies are reluctant to buy the downgraded H20 and are testing domestic alternatives over fears of tightened U.S. restrictions. Nvidia plans two other chips, the L20 and L2, compliant with the new restrictions but has yet to announce their sale.

Nvidia is shifting its focus on chips to preserve its market share in China, following tightened U.S. export restrictions. The A800 and H800 AI chips were introduced as alternatives for Chinese customers but were later blocked from export.

The H20, L20 and L2 chips include most of Nvidia’s newest features for AI work but with reduced computing power to comply with the new rules. The company has launched a modified version of an advanced gaming chip in late December to comply with the new restrictions.



Read more: Nvidia to launch China-focused AI chip in Q2 2024 -sources