Nvidia delays launch of new AI chip in China amid US export rules

livemint.com:

Nvidia has informed its Chinese customers about a delay in the release of a new artificial intelligence (AI chip, as per a Reuters report citing sources. The chip, known as H20 is among a range of new products designed by the California-based chip giant to comply with tightened United States export regulations, it added. Touted as the most potent among three China-targeted chips developed by Nvidia, the H20 faces a setback in its market debut.

This delay may potentially impact Nvidia's competitive stance in China against local contenders such as Huawei, as per the report. Also Read: Nvidia's AI boom almost blows past politics While it was earlier expected to be unveiled as early as November 16, the H20's launch has been rescheduled for the first quarter of next year, sources told Reuters. One source hinted that the launch might occur in February or March.

Sources revealed that the postponement stemmed from challenges faced by server manufacturers in integrating the H20 chip into their systems. Alongside the H20, Nvidia has been strategising the launch of two other chips, the L20 and L2, to comply with the revised US export regulations. While the L20 remains unaffected by delays and is set for its original schedule, information regarding the status of the L2 remains undisclosed.

Also Read: Nvidia share price falls on downbeat China sales outlook Nvidia has declined to comment, the report added. Nvidia's reliance on these chips as a means to retain its market presence in China became crucial after it was restricted from shipping products to China, including the advanced A800 and H800 AI chips, due to Washington's tightened export regulations. Introduced as alternatives for Chinese consumers in November 2022, the H20, L20,