Nvidia To Start Mass Production for Export-Approved AI Chips

US chipmaker Nvidia is set to start mass production in the second quarter of 2024 for an AI chip tailored for China, in compliance with US export rules. This move aims to solidify the company’s market share globally. 

In late December, Nvidia unveiled a modified version of its advanced gaming chip designed to align with the updated rules. The expanded regulations led to notable declines in the stock prices of companies integral to the AI chip industry. Nvidia, in particular, felt the impact due to its significant revenue share from data center chip sales to China.

Intel, another major player in chip manufacturing, is also expected to feel the effects of the regulatory update, especially concerning its Gaudi2 AI chip. The company is relying on these chips to safeguard its market share in China following tightened US export restrictions. These restrictions prohibited the shipment of products like the advanced A800 and H800 AI chips, designed to work interconnectedly and surpass a specific level of performance for training larger models. 

Nvidia's advanced chips, widely utilized in AI applications, have propelled the company's market value beyond US$1 trillion. This has positioned Nvidia as the fifth publicly traded US company to join the "Trillion-dollar club," alongside tech giants Apple, Microsoft, Alphabet, and Amazon.

Alongside the newly developed H20 chip, Nvidia is working on two additional ones, the L20 and L2, in compliance with the new restrictions. The company has not disclosed the sale details for any of these three chips, according to Reuters.

Nvidia currently operates in China, Europe, Asia Pacific, Taiwan, and the United States. However, it does not have production facilities in Mexico or other Latin American countries yet.