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Home » US Export Controls Prompt Nvidia to Develop Custom AI Chips for China

US Export Controls Prompt Nvidia to Develop Custom AI Chips for China

Joan Aimuengheuwa by Joan Aimuengheuwa
July 22, 2024
in DisruptiveTECH
2
US Export Controls Prompt Nvidia to Develop Custom AI Chips for China
Source: Nvidia

Source: Nvidia

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Nvidia, the manufacturer of graphics processing units (GPUs), is reportedly developing a customised version of its latest AI chips for the Chinese market. 

This is due to ongoing issues between the US and China over technology exports, particularly concerning advancements in artificial intelligence (AI).

Reuters spoke to sources familiar with the matter who have revealed that Nvidia is adapting its “Blackwell” series, introduced in March 2024, to meet current US export restrictions. The “Blackwell” series brings performance enhancements, with the B200 chip offering up to 30 times the speed of previous models in specific applications like chatbot responses.

Inspur, a known Chinese distributor for Nvidia, is prepared to collaborate on the launch and distribution of this China-specific chip, tentatively named “B20.” Shipments are expected to commence in the second quarter of 2025.

While Nvidia has yet to officially announce the B20 chip, and both Nvidia and Inspur have refrained from commenting, the move is interpreted as a well-planned response to the US export controls enacted in 2023. These restrictions are designed to limit China’s access to advanced semiconductors, potentially impacting its supercomputing and military capabilities.

In response to these restrictions, Nvidia has already developed three distinct chip designs aimed at the Chinese market. This strategy aims to preserve Nvidia’s market share in China, which historically contributed significantly to the company’s revenue.

The heightened US export controls have also enabled Chinese tech giants such as Huawei and startups backed by Tencent to make strides in the market for advanced AI processors, intensifying competition for Nvidia.

The anticipated B20 chip could strengthen Nvidia’s competitive position with this growing domestic challenge. Despite a decline in China’s share of Nvidia’s revenue due to US sanctions, the H20 chip, Nvidia’s current offering for the Chinese market, has recently seen an increase in sales.

The future of US export controls on semiconductors and AI technology remains uncertain. The US is reportedly urging allies like the Netherlands and Japan to further restrict chipmaking equipment sales to China. Added to this, preliminary plans to impose safeguards on advanced AI models, including those underpinning systems like ChatGPT, could further impact the sector.

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  • Joan Aimuengheuwa
    Joan Aimuengheuwa

    Joan thrives at helping individuals and businesses scale via storytelling...

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