Proactive Investors - US semiconductor megacap Nvidia Corporation is working on artificial intelligence-optimised chips in China, based on its flagship H100 AI chip, according to local reports in the country.
Nvidia’s high-end H100 chip and its A100 chip have been subject to US export controls since 2021 on the authority of the Joe Biden administration.
The stated aim of the sanctions is to hinder the advancements of the People's Republic of China military by restricting its access to sophisticated semiconductors and the equipment required for their production.
Subsequent updates to the sanctions have brought lower-end Nvidia chips, including the A800 and H800, which were initially developed to retain access to the Chinese market, under the umbrella of the sanctions.
Nvidia (NASDAQ:NVDA) has yet to confirm or deny the Chinese state media reports, and it is unclear how the new chips would comply with US sanctions.
Earlier this week, it was reported that Chinese technology multinational Baidu (NASDAQ:BIDU) placed an order of AI chips with domestic chipmaker Huawei over Nvidia, Reuters was told.
Baidu apparently ordered 1,600 Ascend 910B AI chips from Huawei, a product developed by the firm as an alternative to Nvidia's A100 chip, for use in 200 of Baidu’s servers.
Sales in Chinese and Hong Kong comprise 20% of Nvidia’s global revenues, going by the California-based group’s landmark second-quarter earnings statement.
“Given the strength of demand for our products worldwide, we do not anticipate that additional export restrictions, if adopted, would have an immediate material impact on our financial results,” Nvidia said at the time.
Proactive has reached out to Nvidia for a comment.