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CNBC AI News, August 23rd – Following the reported halt in production of its H20 chip, Nvidia isn’t sitting idly by as it potentially loses market share in China. The company is actively seeking to maintain a presence in the crucial Chinese market.
Nvidia CEO Jensen Huang has stated that the company is in discussions with the U.S. government regarding the export of a new, more advanced chip to China. “It is up to the U.S. government,” Huang noted. “Nvidia is in ongoing discussions, but it is too early to know the outcome.”
Reports suggest Nvidia is developing a new AI chip, codenamed B30A, specifically tailored for the Chinese market. Sources indicate the B30A’s performance would surpass that of the H20, currently Nvidia’s only semiconductor product authorized for sale in China.
During a visit to China last month, Huang expressed his desire for Nvidia to sell even more advanced chips than the H20 in the region. This highlights the strategic importance Nvidia places on serving the evolving AI demands of the Chinese market.
However, prior to this, concerns were publicly raised in China regarding potential security vulnerabilities in Nvidia’s chips. Specifically, there were anxieties about the possibility of embedded “kill switches or backdoors.” Nvidia has responded, asserting that its products do not have such features. Nevertheless, these concerns reportedly prompted Nvidia to request some component suppliers to halt production related to the H20 graphics processor.
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