The Santa Clara-based Nvidia created A800 GPU as an alternative to its A100 chip that it can no longer sell to its customers in China following the new regulations from the US government.
In August, the chipmaker was banned from selling the A100 as well as the powerful H100 data center graphic processing unit (GPU) to China-based customers who do not have a license, as per South China Morning Post.
In response, Nvidia had to develop a new chip tailored for the Chinese market in order to be able to keep on selling its products to China-based customers while still adhering to the new US regulations.
Nvidia Offers New Advanced Chip to China-based Customers
The news about the new product of Nvidia was first reported by Reuters, and was later confirmed by the chipmaker.
Now, the Santa Clara-based chipmaker is offering this new advanced chip to its China-based customers.
According to Reuters, Nvidia responded to their reports that computer sellers in the Asian country are now advertising products with the new chip that it produced.
Nvidia's move to develop a new chip for the Chinese market is in line with its aim to continue doing business with China even amid the restrictions imposed by the US government.
Amid the rising tension between China and the US concerning Chinese companies being able to access US technologies such as artificial intelligence and semiconductors, the US crafted export control requirements.
The export limitation started with the ban imposed by the government on Nvidia in August. The chipmaker said at the time that the ban aimed to deal with the risk that the covered products may be used for military purposes in China and Russia.
According to Nvidia, the export limitations could potentially cost the company hundreds of millions of dollars in revenue.
As per CNET, during the third quarter, the company expected approximately $400 million in sales to China. However, since there are customers who are unwilling to purchase alternative products, the figures may be affected.
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China has Become a Very Large Market of GPU Chips for Nvidia
Previously, the Santa Clara-based company has played a significant role in providing chips to China. These chips helped the country move forward when it comes to artificial intelligence (AI), data analysis as well as high-performance computing.
With the new regulations of the US, which ban the exportation of certain chips to China, the country's ability to develop sophisticated AI models is impacted since the chips come from US suppliers such as Intel and Nvidia.
The export of advanced microchips and equipment was effectively banned under the US regulations that were set in early October.
But the latest chip developed by Nvidia for the Chinese market is an indicator that the company is trying to balance its commercial interests with US regulations. About one-quarter of Nvidia's total gross sales comes from the chips being supplied to China.
According to Jensen Huang, Nvidia's founder and CEO, the Asian country has become a very large market for the company since it has grown into a global AI powerhouse.
