Nvidia Takes Pre-Orders for China-Specific AI Chip, H20, Amid Rising Competition

Nvidia has commenced pre-orders for its latest China-specific artificial intelligence (AI) chip, the H20, marking a strategic move amid heightened competition in the Chinese AI chip market. Developed in response to the expanded U.S. bans on high-end chip exports, specifically targeting China's AI and military computing capabilities, the H20 is part of Nvidia's efforts to maintain a stronghold in the region.

Priced at $12,000 to $15,000 per card during the pre-order phase, distributors in China are reportedly advertising the H20 chips at around 110,000 yuan ($15,320), positioning them on par with Huawei's Ascend 910B, which is priced at approximately 120,000 yuan. While the H20 offers less computing power than Nvidia's flagship H100 and the H800, it faces competition from Huawei's formidable 910B.

Distributors have indicated that the H20 servers, pre-configured with eight AI chips, will be available for delivery in small batches in Q1 2024 and in larger quantities from Q2. Nvidia faces increased competition from domestic rivals, particularly Huawei, which dominates the Chinese AI chip market. The H20's specifications indicate a trade-off between FP32 performance and interconnect speed, maintaining competitiveness in applications requiring linked chip systems.

Nvidia CEO Jensen Huang's recent visits to the company's offices in China underscore the significance of the Chinese market in Nvidia's strategic endeavors. The H20 is set to enter mass production in Q2, following a delayed launch originally slated for November 2023. Nvidia plans to introduce two other China-specific chips, the L20 and the L2, with their current rollout status undisclosed.