Nvidia Reaches Workaround For Export Of Flagship Product To China, Wins Alibaba And Peer Cloud Units As Clients

  • NVIDIA Corp NVDA said it had altered its flagship product into a legal version to export to China.
  • On Tuesday, Nvidia said it has similarly developed a China-export version of its H100 chip, Reuters reports.
  • The H800 mainly reduced the chip-to-chip data transfer rate to about half the speed of the flagship H100.
  • The cloud computing units of Chinese technology firms like Alibaba Group Holding Ltd BABABaidu Inc BIDU, and Tencent Holdings Ltd TCEHY used the new chip, called the H800, a company spokesperson said.
  • In 2022, U.S. regulators prohibited Nvidia from selling its two most advanced chips, the A100 and newer H100, to Chinese customers citing national security concerns. Such chips are crucial to developing generative AI technologies like OpenAI's ChatGPT and similar products.
  • "For the young startups, many of them who are building large language models now, and many of them jumping onto the generative AI revolution, they can look forward to Alibaba, Tencent, and Baidu to have excellent cloud capabilities with Nvidia's AI," Nvidia Chief Executive Jensen Huang told reporters on Wednesday. 
  • In 2022, the U.S. regulators launched rules to slow China's development in key technology sectors like semiconductors and artificial intelligence, aiming to limp its efforts to modernize its military.
  • The AI chip embargo on China banned the export of chips with both powerful computing capabilities and high chip-to-chip data transfer rates.
  • Price Action: NVDA shares traded higher by 0.31% at $262.80 on the last check Friday.
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