Login to Continue Learning
NVIDIA’s CEO has commented on the recent situation in China’s AI market and expressed disappointment over the nation’s decision to move away from NVIDIA’s AI chips.
### China Is Now Confident That They Can Replace NVIDIA’s H20 AI Chips With Domestic Solutions
Well, Team Green’s situation in China isn’t improving. Given the geopolitical conditions, Jensen now faces another challenge: a regulatory barrier placed by China. According to a report by The Financial Times (FT), China’s Cyberspace Administration has instructed domestic firms like Tencent and ByteDance to stop testing NVIDIA’s RTX 6000D GPU and halt orders for these products. This move suggests that China is moving toward a complete ban on Team Green’s products, which means NVIDIA can no longer sell “millions” of RTX 6000D GPUs based on project demand.
NVIDIA’s CEO responded to the situation during his state visit to the UK with the Trump administration. He stated:
“We can only be in service of a market if the country wants us to be. I’m disappointed with what I see. But they have larger agendas to work out between China and the US, and I’m understanding of that. We are patient about it.”
It appears that China is shifting towards domestic AI chip solutions due to advancements by companies like Huawei and Cambricon. The report claims that under export controls, China now believes its homegrown AI chips can compete with NVIDIA’s products. Therefore, halting NVIDIA’s AI chip orders is seen as a way to reduce reliance on Western tech.
### Challenges for Domestic AI Chip Production
Despite reaching adequate performance, China faces significant production bottlenecks. This is mainly due to insufficient capabilities in producing the required semiconductors and High Bandwidth Memory (HBM) at large volumes. The shift to domestic solutions requires more than just achieving the same performance as NVIDIA’s H20 AI chip.
The situation between Team Green and China is now more challenging, with resistance from Beijing higher than before. It will be interesting to see how this plays out in the coming months.
