Nvidia plans to launch three new AI chips in China following reported restrictions in the US

The reports surface weeks after the US barred Nvidia from supplying two advanced AI chips and a leading gaming chip to Chinese companies

Nvidia is reportedly preparing to launch three new chips in China, as disclosed by local media. This development follows the recent US restriction that prevented Nvidia from selling two advanced artificial intelligence (AI) chips and one of its premier gaming chips to Chinese companies. The chips in question—HGX H20, L20 PCIe, and L2 PCIe—might be officially announced by Nvidia as early as November 16, as reported by the Star Market Daily, citing sources familiar with the situation.

Nvidia refrained from providing a comment when questioned about the report. In the previous month, the US-based AI chip giant acknowledged that the newly imposed export restrictions by Washington would impede the sale of two of its customized advanced AI chips—the A800 and H800. Both chips were developed for the Chinese market last year to adhere to the export regulations in place at that time.

Nvidia stated that one of its premium gaming chips, the L40S chip unveiled in August, would also be impacted by these measures. The company confirmed that the restrictions, originally scheduled for a later date, would be implemented immediately on October 24, as US regulators expedited the initial deadline.

Nvidia has dominated over 90% of China’s $7 billion AI chip market. Analysts believe that the imposed US restrictions are likely to open up opportunities for domestic companies like Huawei Technologies to gain a foothold. This shift is evident as the Chinese internet giant, Baidu, reportedly placed a significant order for Huawei AI chips earlier this year, well before the announcement of US restrictions. This move by Baidu was seen as preparation for a future scenario in which it might no longer be able to procure chips from Nvidia.

During pre-market trading in New York, Nvidia’s shares experienced a 1.8% increase.