Server manufacturers encountered problems when integrating the chip
Nvidia told customers in China that the company is delaying the launch of a new artificial intelligence chip designed to comply with U.S. export rules until the first quarter of next year.
The chip in question is the H20 chip, the most powerful of three China-focused products that Nvidia has developed to comply with new US export restrictions, Reuters sources said. This could complicate Nvidia's position against the backdrop of Huawei's growing momentum.
Nvidia was expected to launch the new products as early as November 16, but sources now say the launch could take place in February or March. Sources said the H20 is being delayed due to problems faced by server makers while integrating the chip.
In addition to the H20, Nvidia is planning two more chips that comply with the new US export rules – the L20 and L2. Sources said the L20 will not face any delays and will be launched as per the original schedule. They were unable to share information about L2 status.
According to SemiAnalysis, the H20, L20 and L2 include most of Nvidia's latest AI features, but some processing power numbers have been cut to comply with new US regulations.
Restricting exports to the US has enabled rivals such as Huawei to win orders that might otherwise have gone to Nvidia. Chinese internet giant Baidu placed a large order for Huawei artificial intelligence chips this year.