Nvidia to release three new AI chips for China, report says

Nvidia Corp. will release three new artificial intelligence chips for China, according to a report from state-affiliated news outlet Chinastarmarket, after the US further restricted the Asian nation’s access to advanced semiconductors last month. 

Nvidia developed the new AI chips based on the design of its flagship H100 product, and Chinese firms are likely to take delivery over the next few days, Chinastarmarket reported on Thursday, citing unnamed supply chain sources. Following the report, Chinese server supplier IEIT Systems Co. closed up the daily limit of 10%.

A representative for Nvidia declined to comment. Nvidia shares were up 1.9% in premarket trading in New York.

Nvidia suffered its worst stock decline in months after the Biden administration in October stepped up efforts to keep advanced chips out of China, including restricting the sale of AI processors designed specifically for the Chinese market. The US firm has warned that its product development and ability to supply customers may be affected following the latest curbs. 

The products Washington targeted last month include Nvidia’s A800 and H800 series. They were tailored for Chinese firms after American officials first introduced restrictions on artificial intelligence accelerators for China in 2022, out of concern that Beijing could utilize those to modernize its military. 

With the new US export control rules, Nvidia now effectively can‘t even ship its top-of-the-line consumer gaming graphic card RTX 4090 to China, the world’s largest semiconductor market. While Nvidia said it doesn’t see a financial toll from the latest restrictions in the short term, there have been reports suggesting it may have to cancel billions of dollars worth of orders from Chinese tech firms. 

Separately, Intel Corp. is also planning to release a new AI chip for China, local media outlet 21st Century Business Herald reported on Thursday. Intel did not immediately respond to an emailed request for comment after normal US hours.