Nvidia CEO Confirms Next Nvidia China AI Chips Won’t Be From Hopper Series: Nvidia CEO Jensen Huang announced that the company’s next Nvidia China AI chips won’t be from the Hopper series. The decision follows US restrictions on AI chip exports to China.
Huang shared this during a visit to China after the new rules took effect. Nvidia plans to release a modified H20 chip soon, but faces competition from local rivals like Huawei. China is a key market, contributing $17 billion in revenue last year. The US aims to limit China’s access to advanced AI technology.
Also Read | US Credit Rating Downgraded by Moody’s Amid Rising Debt Concerns
Nvidia CEO Confirms Next Nvidia China AI Chips Won’t Be From Hopper Series: Insights
- Nvidia cannot modify Hopper-series chips further for China due to US rules.
- The H20, a downgraded AI chip, will launch in China soon.
- China accounts for 13% of Nvidia’s total sales.
- Local rivals like Huawei are gaining market share.
- Former President Trump may reverse Biden’s AI chip restrictions.
Background
The US government tightened AI chip export rules in January. These rules target China’s access to advanced technology. Nvidia’s Hopper H20 was the only AI chip allowed for sale in China. However, the company now faces challenges. Domestic firms like Huawei are filling the gap.
Nvidia relies heavily on China, earning $17 billion last year. The Biden administration’s policy aimed to slow China’s AI progress. Huang criticized the rules, saying they should focus on spreading US tech globally. Trump has promised to cancel these restrictions if re-elected.
Main Event
Nvidia CEO Jensen Huang confirmed that the next Nvidia China AI chips won’t be from the Hopper series. He made this statement during a visit to China. The US restrictions prevent further modifications to Hopper chips.
Huang said, “It’s not Hopper because it’s not possible to modify Hopper anymore.” His comments came after the US blocked sales of the H20 chip. Nvidia is now planning to downgrade the H20 version for China within two months.
The company faces stiff competition in China. Local players like Huawei are gaining ground. Earlier this month, Reuters reported Nvidia’s struggle to maintain its market share.
The US introduced new AI chip rules in January. These rules limit exports to China and other countries. Huang argued that past regulations were flawed. He believes the focus should be on global tech expansion.
Meanwhile, former President Trump opposes these rules. He has vowed to cancel them if he returns to power. China remains vital for Nvidia, generating 13% of its revenue. Last year, sales in China reached $17 billion.
The situation highlights the growing tech war between the US and China. Nvidia must balance compliance with US laws and its business interests in China.
Nvidia CEO Jensen Huang announces next-generation AI chips for China, confirming they won’t be from the Hopper series due to US export restrictions.
Photo Credits: REUTERS.
Implications
The US restrictions hurt Nvidia’s Nvidia China AI chips business. Competitors like Huawei benefit from the gap. China’s AI development may slow without advanced chips.
For Nvidia, losing China could mean billions in lost revenue. The company must innovate within US limits. Meanwhile, local firms may dominate China’s AI market.
The Biden administration’s rules aim to curb China’s tech growth. However, Trump’s potential policy reversal adds uncertainty. Businesses and investors must prepare for changing regulations.
Conclusion
Nvidia’s next move in China remains uncertain. The Nvidia China AI chips market is crucial but restricted. The company must adapt to survive.
Experts suggest Nvidia may develop new chips outside the Hopper series. Political changes in the US could also reshape the landscape. For now, the tech war between the US and China continues. Nvidia’s future in China depends on innovation and policy shifts.
