In response, Nvidia plans to introduce three new GPUs that comply with the performance caps. However, the most powerful of these, the H20, has been delayed until next year. Other chipmakers like Intel and AMD, who are interested in building export compliant chips for the Chinese market, are also in a challenging position. They must balance the risk of the Commerce Department's disapproval if they push the limits too far, with the potential rewards of the large Chinese market.
Key takeaways:
- The Biden administration is working with Nvidia to determine which chips the company can sell to China, with a focus on preventing the sale of the most sophisticated, high processing power AI chips.
- The US government has increased restrictions on the sale of GPUs and AI accelerators to China due to concerns about their potential use in military applications.
- Nvidia, the largest supplier of accelerators used in AI applications, was significantly affected by these restrictions and has warned investors that a large portion of its datacenter lineup may exceed the new performance caps.
- Nvidia and other chipmakers like Intel and AMD are in a challenging position, as they must comply with US export restrictions while also considering the significant potential of the Chinese market.