Nvidia is allegedly developing AI chips for the Chinese market despite the US ban

Based on its flagship H100 AI chip, US semiconductor giant Nvidia Corporation is developing artificial intelligence-optimized processors in China, local publications in the nation have revealed.

Under the Joe Biden administration's authority, US export limits have been in place for Nvidia's flagship H100 and A100 chips since 2021.

The primary goal of the restrictions is to prevent the People's Republic of China military from progressing by limiting its access to advanced semiconductors and the machinery needed to produce them.

Lower-end Nvidia chips, such as the A800 and H800, which were first created to maintain access to the Chinese market, are now covered by the sanctions due to revisions to the regulations.

The Chinese state media stories have not been confirmed or denied by Nvidia, and it is unclear how the new chips would abide by US restrictions.

Reuters was informed earlier this week that Chinese technology giant Baidu has ordered AI chips from local chipmaker Huawei instead of Nvidia.

For usage in 200 of its servers, Baidu reportedly ordered 1,600 Ascend 910B AI chips from Huawei, a product the company developed as a substitute for Nvidia's A100 microprocessor.

According to Nvidia's historic second-quarter earnings announcement, sales in China and Hong Kong account for 20% of the company's global revenues.

(Sources: investing.com, proactiveinvestors.co.uk)