NVIDIA's "China-compliant" H20 AI accelerators might face the next US ban "hammer" as Team Green stops taking additional orders from Chinese clients.
The US Is Looking To Expand Its Export Restrictions By Banning NVIDIA's "China-Compliant" H20 AI Accelerator
It looks like the Biden administration is putting its foot on the brakes when it comes to sanctioning the sale of NVIDIA's high-end AI equipment to hostile nations like China since now, the rumors of a potential H20 AI GPU ban are looming in the markets, due to which, Team Green has reportedly halted the sale of its accelerator to Chinese companies, as reported by Taiwan Economic Daily. It is said that NVIDIA has stopped accepting new orders for the H20 accelerator and hasn't specified a reason behind it, but it's highly likely that the firm is prepping for a potential revision in the US trade policy.
The investment bank Jefferies pointed out that the US might implement additional restrictions in its review of semiconductor export policies in October, including the decision to ban the trade of NVIDIA's H20 AI GPU. It is estimated that if an H20 ban is implemented, NVIDIA might lose up to $12 billion of revenue from mainland China alone, which would be a huge blow to the firm's sustainability in the domestic markets.
After the ban of the H100, NVIDIA's H20 proved to be a phenomenal replacement, attracting the interest of all regional tech giants, which is why a ban will impact NVIDIA's business in China massively. It's important to note that nothing is official right now, and it is said that Team Green is pressing the US administration not to proceed with the "H20 ban" decision, but given past experiences, it won't be wrong to say that this particular move is imminent.
If we look at a larger scale, the export control policies implemented by the US in the past year or so haven't worked out quite well when it comes to limiting the influence of AI developments in China, given that individuals/organizations have found new "loopholes," which act as compensation. One such example is the recent boom in GPU rental servicing and how firms established in countries such as the UAE provide computing renting options to clients in China, which is also based on NVIDIA's cutting-edge AI accelerators.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
Follow Wccftech on Google to get more of our news coverage in your feeds.
