According to Reuters, sources revealed that NVIDIA has reduced the prices of chips for artificial intelligence (AI) work sold in China. This move comes as a response to Huawei, who has developed AI chips to be sold at a lower price. China is considered a key market for NVIDIA, with sales accounting for an estimated 17% of total revenue this year. It is essential for NVIDIA to maintain its market share in the country. However, due to restrictions imposed by the United States banning Chinese companies from purchasing the latest AI chips, NVIDIA has had to specifically design and sell the H20 architecture chips in China to compete with Huawei’s latest Ascend 910B technology. Some reports suggest that in certain aspects, the H20 chips fall short compared to the Ascend 910B.
As a result of these developments, NVIDIA has had to decrease the price of H20 in China to be more competitive with Ascend 910B, at least by 10%. Analysts believe that NVIDIA has predetermined figures on how much the price can be reduced to in order to maintain its market share in China.
TLDR: NVIDIA has lowered the prices of AI chips sold in China in response to competition from Huawei, aiming to maintain its market share in the country despite challenges posed by US restrictions on Chinese companies.
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