Nvidia has taken a significant step by opening pre-orders for its cutting-edge artificial intelligence (AI) chip, the Nvidia H20, tailor-made for the Chinese market. This strategic move is in response to the expanded U.S. bans on high-end chip exports, strategically positioning the H20 as the most robust solution among three Nvidia cards aimed at overcoming regulatory challenges.
Unveiling the Nvidia H20: Navigating Regulatory Challenges
In comparison to Nvidia’s flagship H100 AI chip and the H800, the Nvidia H20 inherently offers diminished computing power. However, it directly competes with Huawei’s Ascend 910B, a formidable AI chip in the Chinese landscape. Distributors in China are pricing the H20 in the range of $12,000 to $15,000 per card, with some listings hovering around 110,000 yuan ($15,320), closely mirroring Huawei’s 910B pricing.
Beyond individual chip pricing, distributors are offering pre-configured Nvidia H20 servers equipped with eight AI chips for 1.4 million yuan. This presents a compelling and cost-effective alternative when compared to servers outfitted with eight H800 chips, which were priced at around 2 million yuan approximately a year ago.
A closer look at the H20 specifications reveals potential areas where it may lag behind Huawei’s 910B, particularly in FP32 performance. However, it distinguishes itself with an advantage in interconnect speed, a crucial factor for applications demanding seamless collaboration among multiple chips to function as a unified system.
The expected timeline for H20 product delivery involves small batches in the first quarter of 2024, with larger quantities becoming available in the subsequent quarter. This rollout comes at a crucial juncture, as Nvidia faces heightened competition from domestic rivals in the wake of the U.S. restrictions, with Huawei emerging as a key player in the Chinese AI chip market.
Noteworthy is Nvidia CEO Jensen Huang’s recent visit to the company’s offices in Shenzhen, Shanghai, and Beijing. This underscores the strategic importance the company places on the Chinese market. Despite a delay in the H20’s initial launch, with mass production slated for the second quarter of this year, Nvidia remains steadfast in maintaining a competitive edge in the rapidly evolving Chinese AI sector.
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