China AI chip designed to comply with US export rules
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China AI chip designed to comply with US export rules the new chip, called the H20, was being delayed due to issues with server manufacturers were having integrating the semiconductor into their products, Reuters reported.

As of pre-market trade, NVIDIA shares were down 2.4%, on a day that will be shorter than usual in the United States.

Reuters, citing two sources familiar with the matter, reported that NVIDIA told Chinese customers it would delay the release of its AI chip until the first quarter of next year to comply with U.S. export regulations.

Further restrictions were imposed on AI chips exported to China by the U.S. government in October. As a result of those rules, NVIDIA’s A800 and H800 chips were prohibited from being exported. These semiconductors were also specifically designed for China.

Additionally, NVIDIA will launch two other export-complaint chips in the near future, the L20 and L2, according to Reuters.

As a result of the delay, NVIDIA could suffer a setback, which is facing competition from local players such as Huawei, which makes about a fifth of its revenue from China.

It was reported this week that NVIDIA tripled its revenue in the September quarter, but the company has warned that export restrictions will cause sales in certain regions to decline “significantly” going forward.