Nvidia (NASDAQ:NVDA) is reportedly gearing up to launch three new chips for the Chinese market, as disclosed by local media sources on Thursday. This move comes in the wake of the U.S. blocking the company from selling two high-end artificial intelligence (AI) chips and a leading gaming chip to Chinese firms.
The chips in question, named HGX H20, L20 PCIe, and L2 PCIe, may be officially announced as early as November 16, according to the STAR Market Daily news outlet, citing individuals familiar with the matter.
In October, Nvidia revealed that the new export restrictions imposed by the U.S. would prevent the sale of two modified advanced AI chips, the A800 and H800, designed for the Chinese market. Additionally, one of the company’s premium gaming chips, the RTX 4090, would also be impacted by these restrictions, effective immediately.
Nvidia has traditionally held over 90% of China’s $7 billion AI chip market. The recent U.S. curbs are expected to create opportunities for domestic companies such as Huawei Technologies (HWT.UL) to make strides in the industry. Chinese tech giant Baidu (9888.HK) reportedly placed a significant order for Huawei AI chips earlier this year, potentially anticipating a future where it could no longer procure from Nvidia due to the export restrictions.
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