China Tightens Grip on Nvidia's H20 Chip Amid AI Competition
Chinese authorities have discouraged local companies from using Nvidia's H20 chips for government-related tasks. This move impacts Nvidia's China sales efforts, as China promotes domestic AI chips. Amidst ongoing U.S.-China tensions, both nations seek to bolster their own technological supremacy in the AI chip industry.
In a significant development, Chinese authorities have issued advisories to local companies, urging them to steer clear of Nvidia's H20 chips, particularly for any government-related applications. This move presents a substantial challenge for Nvidia as it seeks to invigorate its flagging sales in the Chinese market.
Official notices discouraging the use of the H20, a chip considered less advanced, were dispatched to a variety of companies, particularly emphasizing avoidance for government or national security-linked engagements. This comes after Washington lifted a ban, making the H20 the most advanced AI chip Nvidia can sell in China.
China is focusing on endorsing homegrown technologies, such as AI chips developed by Huawei. The geopolitical rivalry escalates as both the U.S. and China strive for an upper hand in AI technology, with recent diplomatic nuances influencing Nvidia's and AMD's operations in the region.
(With inputs from agencies.)
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