NVIDIA has begun accepting pre-orders for a new AI chip, specifically designed for the Chinese market, from distributors who are pricing it at the level of a competing Huawei product .
Nvidia is developing the H20 graphics card specifically for the Chinese market, a move that will confront export restrictions from the US. Although it offers less power compared to the H100 AI and H800, the H20 is offered at a price of $12,000-15,000 (~ €11,000-14,000) per card, making it competitively more affordable.
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Distributors are offering H20-powered systems at a price of 1.4 million yuan, competing with servers using the H800. This choice reflects developments in the artificial intelligence market and geopolitical constraints.
A year ago, Nvidia announced the H20 AI chip, with a plan to ship in batches from the first quarter of 2024. Nvidia's dominance in the Chinese market has been eroded by increasing competition, especially from Huawei and its 910B chip. Although the H20 lags behind performance , it has an advantage in speed . Nvidia plans to mass produce the H20 in the second quarter of 2024, as the initial launch was delayed due to issues with server manufacturers.
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In addition to the H20, Nvidia plans to launch its L20 and L2 chips in China. CEO Jensen Huang's visit to the company China offices underscores the importance of the Chinese market for Nvidia.
Source: businesstimes.com
