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Under the pressure of US sanctions, NVIDIA relies on adaptation strategy. The company is preparing a new AI chip designed specifically for the Chinese market. Objective: Stay present in an area estimated at $ 50 billion, despite US restrictions.
In short
- Nvidia is developing a less powerful IA chip per $ 6,500 to bypass US limitations.
- The company seeks to maintain its share in the Chinese market in the face of Huawei.
Decorative AI not to lose China
In January 2025, he circulated rumors that Trump’s administration planned to ban NVIDIA on the sale of its fleas IA in China. In response to the American restrictions of its products, NVIDIA is about to run New lightweight chip AI for china.
The price announced between $ 6,500 and $ 8,000, slices with a H20 price. The latter sold between $ 10,000 and $ 12,000 before his ban. This technology was also voluntary to respect the Prague width required by Washington. It is 1.7 teraocet per second.
The goal is clear: to avoid The exclusion of the Chinese market Ia Which still represents 13 % of the group’s income. NVIDIA spokesman also admitted that without validating the United States Government, society was probably excluded from Chinese data centers.
The situation is critical. Proof: Nvidia’s share in China’s market decreased from 95 % to 50 % compared to the first limits.
Good to know:
This IA chip would be the third attempt by NVIDIA to remain in line with US requirements. Thanks to its approach, the company hopes to restore the field against Huawei, whose Ascend 910D is at the start phase.
Between political pressure and immediate results
This strategic choice comes a few days before the publication of Nvidia quarterly results. Specifically, 28 May.
Despite the loss of H20 sales, some analysts predict:
- turnover of $ 43.4 billion;
- Adjusted net profit of 21.3 billion (66 %).
NVIDIA therefore plays two tables: maintain its performance while protecting its place in the global IA market fragmented with geopolitical voltage.
With this more affordable chip, NVIDIA seeks to align political pressure and ambitions in the AI world. The future could also go through other regions, less sensitive than the United States and China.
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My name is Ariela and I’m 31 years old. I have been in the area of writing a website for 7 years. I have discovered discovery and cryptocurrency for only a few years. But it is a universe that interests me a lot. And subjects treated in the platform allow me to learn more. In my free time, the singer also cultivates a great passion for music and reading (and animals!)
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