Nvidia is likely to build artificial intelligence china in collaboration with Dipsic

After the US Department of Commerce restricted the export of Nvidia’s H20 chips to China, it is said that the company, in collaboration with Deepsic, is planning to develop artificial intelligence chips for China.

The US Department of Commerce recently announced that Nvidia needs special licenses to export its H20 chips to China, but according to a new report released by CTEE, Nvidia plans to develop custom artificial intelligence chips in collaboration with the Dip -Sick Startup.

Nvidia wants to maintain its share of the Chinese market

The details of this cooperation are still unclear, but Nvidia claims to be completely rely on the China’s internal supply chain, including partnerships to use HBM, process knot and packaging facilities. In addition, CTEE claims that Nvidia plans to closer to the market and maintain its presence in China by launching the China Research Center.

Chinese companies are using H20 chips to teach artificial intelligence models and build datacenters, but the US government is worried that China will benefit from these chips to build supercomputers. Dedicated H20 chips are designed for the Chinese market and have less processing power than other Nvidia products, but this has not allowed Chinese buyers to access them.

China is one of Nvidia’s largest buyers, accounting for 5 % of Nvidia’s total sales in the last fiscal year. Also since the beginning of the year, Nvidia has been able to end the $ 5 billion H20 chip’s contract with Chinese companies. Of course, due to the imposition of new export restrictions, these contracts are probably not. Nvidia has announced that the company will cost $ 1.5 billion to China as a result of the export of the H20 chips.

Of course, Nvidia’s willingness to develop artificial intelligence chips for China is still speculation, and due to the increasing tensions between Washington and Beijing, Nvidia must first satisfy American regulatory agencies.