China is currently advising AI startups to refrain from acquiring AI chips from NVIDIA to reduce the impact of US policy on the regional market.
China takes steps to bring production of AI computing power to domestic market, prompting startups to switch to their alternatives
The Biden administration has done everything it can to curb the growth of China’s AI industry, including restricting domestic semiconductor development and modifying export policies to prevent China from accessing high-end AI hardware. Although China has found multiple workarounds to these US policies, such as renting GPUs and leveraging the black market, AI tech giants such as ByteDance and Alibaba have been significantly affected by the restrictions and have ultimately been forced to negotiate with the government. This has created new problems for the growth of AI-centric businesses. .
Bloomberg is now reporting that Chinese regulators are advising AI startups to stop purchasing NVIDIA’s H20 AI accelerator, and the potential ban could create new problems for such companies. It has been pointed out that it may cause The move is an attempt to push Chinese AI startups to the global frontier without relying on Western technology and instead focus on resources available from within the company.
We recently reported on the possibility that the US government could ban exports of NVIDIA’s H20 AI GPUs to China, even though they are initially “China compliant.” Not only this, the Biden administration has made several efforts to thwart China’s AI market by banning a range of NVIDIA accelerators and equipment such as A100 and H100. In light of this, multiple companies such as Huawei and Virentec have brought their solutions to market and have gained considerable sales traction in the past, but the reliance on NVIDIA remains heavy.
The importance of Chinese consumers to NVIDIA is significant given that the region accounts for 12% of the company’s quarterly revenue, or approximately $3.7 billion. Therefore, while Team Green cannot afford a blanket export ban, the way things are progressing, NVIDIA will either have to implement a compliant solution with each policy revision, or We may have to say goodbye to. Business in China.
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