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china encourages domestic ai startups not to acquire nvidia chips

2024-09-29

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whip bull report, september 28 news, according to foreign reports, the us biden administration is doing its best to suppress the development of china's artificial intelligence industry, whether it is restricting the development of local semiconductors or modifying export policies to prevent china from obtaining high-end artificial intelligence hardware.

while chinese companies did find a variety of ways to deal with such u.s. policies, such as gpu leasing and exploiting the black market, ai tech giants like bytedance and alibaba were severely affected by these restrictions, ultimately creating crippling consequences for governments and ai-based companies. the development of key enterprises has brought new troubles.

chinese regulators have advised artificial intelligence startups to stop buying nvidia's h20 artificial intelligence accelerator, citing a potential ban that would create new problems for such companies, bloomberg reported. the move is aimed at pushing chinese artificial intelligence startups to the global forefront, instead of relying on western technology and focusing on resources gained through in-house resources.

the media recently reported that the us government may ban the export of nvidia's h20 ai gpus to china, even though they originally met chinese standards. not only that, the biden administration has also taken multiple measures to block the chinese ai market, banning a series of nvidia accelerators and equipment, such as the a100 and h100.

in view of this, several companies such as huawei and birentech have demonstrated their own in-house solutions to the market and have achieved good sales growth in the past, but their reliance on nvidia is still large.

chinese consumers are important to nvidia as the region accounts for 12% of the company's quarterly revenue, which is approximately $3.7 billion. therefore, team green cannot afford a blanket export ban, but as things stand, either nvidia will roll out compliance solutions every time they see policy changes, or they may have to say goodbye to their china business.