- $12bn AI Chip Sales: Nvidia is set to generate $12bn from AI chip sales in China this year, bypassing US export restrictions.
- New H20 Chips: The company will deliver over 1 million H20 chips, designed to comply with export regulations while meeting Chinese market demands.
- Competitive Edge: Despite lower performance compared to US counterparts, Nvidia’s H20 chips outperform local rival Huawei’s Ascend 910B in practical applications.
Impact
- Revenue Surge: Nvidia’s strategic release of H20 chips ensures significant revenue from the Chinese market despite export controls.
- Market Dominance: The move positions Nvidia ahead of Huawei in China’s AI chip market, highlighting its ability to navigate regulatory challenges.
- Tech Tensions: The situation underscores the ongoing tech rivalry between the US and China, with implications for global AI development and military applications.
- Customer Retention: Nvidia’s established ecosystem and software compatibility make it difficult for Chinese AI companies to switch to local alternatives, maintaining Nvidia’s market influence.
Eksentricity 
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