Nvidia’s China-targeted AI chip to be priced similarly to Huawei’s
January 31, 2024 – 11:57 PM PST
Exciting News: Nvidia Takes Pre-Orders for New China-Specific AI Chip, Competing with Huawei
The graphics card, the H20, is the most powerful of three Nvidia has been developing for the Chinese market after the U.S. expanded bans on high-end chip exports, aiming to hamper China’s ability to develop AI and sophisticated computers for its military.
The H20 will naturally deliver less computing power than Nvidia’s flagship H100 AI chip and the H800 – the later China-specific card that was also banned in October.
But specifications for the H20 also appear to indicate it is less powerful than Huawei’s (HWT.UL) Ascend 910B in some key areas, according to three sources, who were not authorised to speak to media and declined to be identified.
Nvidia has in recent weeks been pricing orders for H20 distributors in China in a range of $12,000 to $15,000 per card, according to two sources.
Some distributors have started advertising the chips with a significant markup to the lower end of that range at about 110,000 yuan ($15,320), one of the sources said. By comparison, Huawei’s 910B is being sold for around 120,000 yuan, two of the sources said.
Nvidia declined to comment.
One source said distributors are offering H20 servers, which are pre-configured with 8 of the AI chips, for 1.4 million yuan. By comparison, servers that used 8 of the H800 chips were sold at around 2 million yuan when they were launched a year ago.
Distributors have told clients they will be able to start delivering the H20 products in small batches in the first quarter of 2024 and in larger quantities from the second quarter, the source added.
Before the U.S. curbs, Nvidia dominated China’s AI chip market with more than 90% share. However, it currently faces increasing competition from domestic rivals, chief among them being Huawei.
Huawei’s 910B chip is widely considered the most competitive AI offering now available within China and has become more popular amid concern that buyers could be faced with further restricted access to Nvidia’s products resulting from U.S. sanctions.
In terms of specifications, one example of where the H20 appears to lag the 910B in its FP32 performance – a critical metric that measures how quickly a chip can process common tasks and which is rated at less than half of its rival’s capability, one source said.
However, the H20 appears to have an advantage over the 910B in terms of interconnect speed, which measures how quickly data can transfer between chips, according to the source.
That means the H20 remains competitive with the 910B in applications that require linking a large number of chips together to work as a system, he said.
Reuters reported last month that Nvidia plans to begin mass production of the H20 in the second quarter of this year.
It was originally scheduled for launch last November but that plan was delayed, with sources saying at the time that the delay was due to issues that server manufacturers were having in integrating the chip.
Nvidia also plans to roll out two other China-specific chips, the L20 and the L2. Reuters was not able to determine the current status of the rollout for those two chips. Neither the H20, the L20 or the L2 are currently listed on Nvidia’s website.
Underscoring the importance of the China market to Nvidia, CEO Jensen Huang visited the company’s offices in Shenzhen, Shanghai and Beijing last month for the company’s annual parties before the Lunar New Year holiday, local media reported.
($1=7.1780 Chinese yuan)
Reporting by Yelin Mo and Brenda Goh; Editing by Edwina Gibbs
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In what areas does Nvidia’s H20 chip have an advantage over Huawei’s Ascend 910B, and how does this affect its competitiveness in the Chinese market
Exciting News: Nvidia Takes Pre-Orders for New China-Specific AI Chip, Competing with Huawei
January 31, 2024 – 11:57 PM PST
In a move that aims to challenge Huawei’s dominance in the Chinese market, Nvidia has announced that it is now taking pre-orders for its new China-specific AI chip, the H20. This comes as the United States has expanded bans on high-end chip exports, specifically targeting China’s ability to develop advanced AI capabilities for its military.
While the H20 is not as powerful as Nvidia’s flagship H100 AI chip or the banned H800, it is still a significant contender in the market. However, it appears that Nvidia’s H20 is slightly less powerful than Huawei’s Ascend 910B in certain key areas, according to anonymous sources. The H20 is being priced for distributors in China at around $12,000 to $15,000 per card, with some distributors already advertising them at a markup of about 110,000 yuan ($15,320). In comparison, Huawei’s 910B is being sold for around 120,000 yuan.
Despite facing increasing competition from domestic rivals, Nvidia previously dominated China’s AI chip market, holding more than 90% market share. However, with the availability of Huawei’s 910B chip, which is considered the most competitive AI offering in China, Nvidia’s position has become more challenging. Concerns over potential restricted access to Nvidia’s products due to U.S. sanctions have fueled the popularity of Huawei’s chip.
While the H20 may lag behind the 910B in FP32 performance, a critical metric for chip processing speed, it appears to have an advantage in terms of interconnect speed. This means that the H20 remains competitive with the 910B in applications requiring the linking of multiple chips together to function as a system.
Nvidia plans to begin mass production of the H20 in the second quarter of this year. The chip was initially scheduled for launch in November but faced delays due to integration issues with server manufacturers. Nvidia is also planning to roll out two other China-specific chips, the L20 and the L2, but their current status is unknown.
The Chinese market is of utmost importance to Nvidia, as CEO Jensen Huang recently visited the company’s offices in Shenzhen, Shanghai, and Beijing for the annual Lunar New Year celebrations.
In conclusion, Nvidia’s entry into the Chinese market with its new H20 chip marks a significant development in the competition with Huawei. While the H20 may not match the 910B in all aspects, it presents a formidable option for customers looking for AI chips in China. The battle between these two tech giants will undoubtedly shape the future of AI development in the country.
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