Nvidia Unveils AI Chip with Reduced Speed, Power for Chinese Market

30 Dec, 2023

Nvidia Unveils AI Chip with Reduced Speed, Power for Chinese Market

Nvidia, the globally renowned chip manufacturer, has introduced a novel gaming processor tailored for the Chinese market, adhering to stringent US export regulations. Unveiled on the company's Chinese website, the RTX 4090 D chip promises significant advancements in performance and AI-powered graphics. Set for exclusive release in January within the region, this version boasts enhancements but exhibits an approximate 11% performance dip compared to the original 4090 chip launched in late 2022.

The modified design incorporates fewer processing subunits, specifically aimed at accelerating AI workloads. By offering less advanced capabilities, Nvidia aims to navigate US export regulations while aiming to uphold its dominant position in China's thriving $7 billion AI chip market.

Presently holding a commanding 90% market share in China, Nvidia faces challenges due to US restrictions on high-tech exports to the region, citing national security concerns. CEO Jensen Huang highlighted the company's collaboration with the US government to craft compliant products, yet historical challenges persist.

Prior alterations made by Nvidia to GPU chips for the Chinese market later encountered inclusion in the list of banned technologies by the US government. For instance, the export ban on Nvidia's H100 chips led to subsequent releases, like the H800, as an interim solution. However, these new versions faced subsequent export restrictions from the US.

While US-China tensions continue, Chinese tech firms are swiftly introducing rival AI models, supported by substantial government investments totaling $41 billion. In response to ongoing trade tensions, Huang hinted at diversifying Nvidia's supply chain to Southeast Asia, foreseeing it as a pivotal technology hub. During a visit to Malaysia, Huang emphasized this potential shift, alongside plans for increased investment in Singapore's AI development.

Despite these complexities, Nvidia outperformed expectations in the third quarter, boasting a remarkable 206% surge in revenue, reaching $18.1 billion. The company's stock has tripled in value this year, propelling its market valuation beyond the $1 trillion mark.