China instructs domestic companies not to purchase NVIDIA's AI semiconductors - sources.
September 28, 2024 4:00 JST
Chinese authorities are increasing pressure on domestic companies to buy Chinese-made AI semiconductors instead of those made by the American company NVIDIA. This is part of efforts to expand the domestic semiconductor industry and counter US sanctions.
According to several sources familiar with the matter, Chinese authorities have urged domestic companies to refrain from purchasing NVIDIA's semiconductor 'H20', which is used for developing and running AI models. The instructions from the authorities are seen as guidelines rather than a complete ban on purchases, the sources said. China aims to avoid disadvantaging its own AI startups and escalating tensions with the US.
Chinese authorities are increasing pressure on domestic companies to buy Chinese-made AI semiconductors instead of those made by the American company NVIDIA. This is part of efforts to expand the domestic semiconductor industry and counter US sanctions.
According to several sources familiar with the matter, Chinese authorities have urged domestic companies to refrain from purchasing NVIDIA's semiconductor 'H20', which is used for developing and running AI models. The instructions from the authorities are seen as guidelines rather than a complete ban on purchases, the sources said. China aims to avoid disadvantaging its own AI startups and escalating tensions with the US.
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Kimihiko : Nvidia's Chief Financial Officer, Colette Kress, stated, "Revenue from China's datacenters has been increasing gradually in the second quarter and is making a significant contribution to the datacenter revenue. As a percentage of total datacenter revenue, it remains below the pre-imposition level of export restrictions."
Nevertheless, according to the report, some AI companies in China continue to hoard Nvidia's H20 chips despite government orders.