NVIDIA is developing new AI chips for China that comply with US export restrictions. The company was notified last year that it would be restricted from exporting certain computer chips to Russia and China due to military use concerns. As a result, NVIDIA designed the A800 and H800 chips specifically for the Chinese market. However, the US government recently issued updated restrictions that also affect those chips, along with other NVIDIA products. The company may end up canceling over $5 billion worth of advanced chip orders in China. The new chips, called the HGX H20, the L20, and the L2, are designed to comply with the US government’s new export rules. Chinese companies are also developing their own semiconductors in anticipation of potential import restrictions from the US and other countries. Despite this, some NVIDIA customers may still prefer the company’s components due to its reputation and robust AI development software. NVIDIA may announce the new chips as soon as November 16 and start selling them before the year ends.
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