In response to these restrictions, Nvidia has been selling alternative versions of its chips that do not require a US license for export to China. The company hopes this strategy will help it compete in China later this year. Nvidia also started selling a new gaming processor with fewer capabilities in January, which complies with US export rules and can be sold in China. Despite the current challenges, Nvidia's CEO, Jensen Huang, remains hopeful about the company's performance in China.
Key takeaways:
- Nvidia's data center revenue has significantly increased due to the rising demand for their chips in creating AI models, leading to a quarterly revenue of $22.1 billion.
- However, Nvidia's revenue in China has declined significantly due to US government export control regulations imposed in October.
- Nvidia is still selling alternative versions of its chips that don't require a US license for export to China, which could help it compete in the Chinese market later this year.
- In January, Nvidia started selling a new gaming processor with fewer capabilities, which can be sold in China while still complying with US export rules.