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NVIDIA, AMD may soon start selling new AI chips in China to comply with USrestrictions
NVIDIA and AMD plan to sell new AI GPUs in China to comply with U.S. export restrictions, with NVIDIA offering a budget AI chip expected to cost between $6,500-$8,000. These announcements follow a significant financial setback for NVIDIA due to licensing impacts, projecting an $8 billion revenue loss in Q2 2023 due to restrictions on its high-end GPUs.
Key points
- NVIDIA and AMD to sell AI GPUs in China due to U.S. restrictions.
- NVIDIA's new GPU, 'B20', is a stripped-down model for AI workloads.
- AMD to target AI needs with Radeon AI PRO R9700 workstation GPU.
- Sales expected to begin from July 2023.
- NVIDIA faced a $4.5 billion charge in Q1, unable to ship $2.5 billion worth of chips.
- Projected $8 billion revenue hit for NVIDIA in Q2 due to licensing restrictions.
Why it matters
- Current global semiconductor supply chain tensions emphasized by U.S.-China trade relations.
- Emerging trends in budget AI technology as companies adapt to market restrictions.
- Shift in AI chip accessibility reflecting broader technology competition between the U.S. and China.
The move by NVIDIA and AMD highlights the evolving landscape of AI technology amid geopolitical tensions, with budget options emerging as companies adapt to stringent export policies.