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CNBC AI News, August 13th – The artificial intelligence arena is largely dominated by the U.S. and China. NVIDIA, aiming to tap into the lucrative Chinese market, developed the H20 AI chip specifically tailored for those needs. However, export restrictions abruptly halted its shipment in April.
In a potentially precedent-setting move, mid-July saw a conditional green light for the H20. This clearance reportedly includes a stipulation where manufacturers remit 15% of their revenue to the U.S. government in exchange for export licenses. AMD’s MI308 chip faces the same financial arrangement.
Despite the renewed authorization, the H20’s journey to China remains fraught with obstacles, including domestic controversy. Questions linger: Why is NVIDIA so determined to export AI chips to the Chinese market?
An NVIDIA spokesperson recently defended the company’s position on H20 exports, acknowledging the delay in shipments over the past months. They emphasized that the company believes export control rules should empower the U.S. to successfully compete with China on the global stage.
The company further stated that the U.S. must avoid repeating the mistakes made with 5G, where it lost its leadership position in telecommunications. “If we’re engaged in the competition, U.S. AI technology can become the global standard.”
This stance echoes the views of NVIDIA founder and CEO Jensen Huang, who previously elaborated on the rationale for participating in AI competition. He noted that the U.S. missed the 5G revolution due to technological missteps, policy shortcomings, and flawed strategic thinking. Now, with AI and 6G on the horizon, the U.S. cannot afford to let history repeat itself.
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