NVIDIA is reportedly planning to release a downgraded version of its H20 artificial intelligence chip specifically for sale in China. This strategic move aims to comply with new U.S. export restrictions on advanced AI chips.
The decision to modify the H20 chip is a direct response to the stringent U.S. curbs on global AI chip exports, which have impacted NVIDIA's ability to supply its original models to the Chinese market. This adaptation seeks to retain market access.
By offering a compliant, albeit less powerful, version of its H20 chip, NVIDIA is working to mitigate potential revenue losses from the effectively closed $50 billion China AI market for its current offerings. This approach reflects the complexities of operating in a geopolitically sensitive industry.
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