NVIDIA bypasses US’ curbs, continues to sell specialised AI chips to China

NVIDIA is developing a customized AI chip specifically for China to navigate the challenges posed by stringent US export controls. In a strategic move to maintain its market presence in China, NVIDIA is also working on a special server that will be paired with these new AI chips.

This marks the first time NVIDIA will introduce a new server designed for a specific market, highlighting the company’s commitment to innovating around regulatory constraints.

According to The Information, NVIDIA’s approach to circumvent US export rules involves pairing the new AI chips with a specially designed server. Two individuals involved in the server’s development revealed that the new AI chip, tailored for the Chinese market, will be available next year.

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The development of China-specific AI chips comes in the wake of a Reuters report indicating NVIDIA’s plans to create an AI chip for the Chinese market. This move is part of NVIDIA’s strategy to sustain revenue from one of its crucial markets despite the export controls.

In March, NVIDIA unveiled its “Blackwell” chip series, including the B200 model. The chip tailored for the Chinese market is tentatively named the “B20.” The Blackwell chip series is expected to enter mass production later this year, with the B200 model reportedly being 30 times faster than its predecessor in certain tasks, such as providing answers from chatbots.

These chips are designed to enable organizations to build and run real-time generative AI on trillion-parameter large language models with up to 25 times less cost and energy consumption compared to previous models.

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The new AI chip and server for the Chinese market represent NVIDIA’s innovative response to the challenges posed by US export controls. By developing tailored solutions, NVIDIA aims to continue delivering cutting-edge technology to its Chinese customers while complying with regulatory requirements.

The US export controls on advanced technology aim to limit China’s access to high-performance computing capabilities, particularly in AI, which is seen as critical for military and strategic applications.

The collaboration with Inspur is particularly noteworthy, given that Inspur is one of NVIDIA’s key partners in China. This partnership is expected to facilitate the smooth introduction and distribution of the new AI chip, ensuring that NVIDIA maintains its competitive edge in the Chinese market. Inspur’s extensive distribution network and expertise in the local market will be instrumental in promoting the new AI chip and server, helping NVIDIA navigate the complex regulatory landscape.

NVIDIA’s Blackwell chip series, including the B200 and the upcoming B20, represents a significant leap in AI processing capabilities. The B200 model’s ability to perform certain tasks 30 times faster than its predecessor and its efficiency in running large language models with significantly lower costs and energy consumption are major selling points.

These advancements are expected to be highly attractive to Chinese companies looking to enhance their AI capabilities while managing operational costs and energy use.

This approach not only helps NVIDIA comply with US export controls but also ensures that it continues to deliver high-performance technology to its global customer base. As the geopolitical landscape evolves, NVIDIA’s ability to navigate these challenges will be crucial for its sustained growth and success in international markets..