Reports indicate that the Chinese government is preparing to issue new regulations regarding the energy efficiency of data processing centers, with a key focus on NVIDIA’s H20 chip failing to meet the criteria of these new regulations. The H20 chip is an AI chip produced by NVIDIA specifically for sale in China, in order to comply with export regulations set by the United States. Previously, there have been reports of tech companies in China rapidly ordering large quantities of the H20 chip to meet the demand for AI. China is considered a significant market for NVIDIA, accounting for 13% of global sales.
It is speculated that these new regulations are aimed at promoting the use of domestically produced AI chips, which are cheaper and more accessible, in an effort to reduce reliance on imported chips. Reports suggest that NVIDIA is aware of this issue and is in negotiations with high-level officials in China to modify the H20 chip to meet the energy efficiency requirements of these new regulations.
Source: Guru Focus
**TLDR: Chinese government is introducing new regulations on energy efficiency for data centers, targeting NVIDIA’s H20 chip for not meeting the criteria. NVIDIA is in talks to adjust the chip to comply with the new regulations.**
Leave a Comment