Chinese Technology Companies Persistently Eye Nvidia's AI Chips, Despite Preferences from the Chinese Government Against Such Purchases
Nvidia's H20 chip, a key player in the AI industry, has been making headlines lately, with its performance in China outshining domestic alternatives. However, the journey of the H20 chip has not been without its challenges.
In late August, Nvidia paused production of the H20 chip due to government concerns and scrutiny. This halt came after export controls made the H20 chip unavailable for Nvidia in May. The US government, however, allowed the sale of the chip in China in July, but under the condition that it would take a cut in return.
Chinese companies like ByteDance, Alibaba, and Tencent have allegedly placed orders for the H20 chips but are currently waiting for delivery amid a national security review and political caution from Chinese regulators. These firms ordered the H20 chip after the US government allowed the sale of the chip in China in July.
The H20 chip is a downgraded version of the top-of-the-line H100 GPU, primarily used for AI workloads in servers. Nvidia had between 600,000 to 700,000 H20 chips and asked TSMC to step up production in July to meet the demand.
Amidst this, Nvidia is reportedly developing its next AI chip, code-named B301, on the Blackwell architecture. The company has denied the existence of any backdoors in its devices, a claim that has been a subject of debate due to some US politicians arguing to add backdoors into Nvidia's tech.
The unpredictability of America's stance on tariffs may cause concerns for those outside the US regarding full reliance on production from within the States. In response, China seems to want to step up its own production.
Meanwhile, in the world of PC gaming, Nvidia's GeForce RTX 5090, RTX 5070 Ti, and RTX 5060 XT 16 GB are making waves as the best high-end, mid-range, and best value graphics cards respectively, according to various reviews. AMD's Radeon RX 9070 continues to hold the title of the best overall graphics card.
James Bentley, a PC gaming convert who started writing about gaming in 2019 after completing a degree in law and media, provides insights into the world of gaming and technology.
The AI industry is currently a competitive field among countries, aiming to win the AI arms race. The H20 chip situation serves as a testament to this competition and the complexities involved in the global tech landscape.
