In This Article
- US Blocked Nvidia’s H20 Chip Supply to China
- How is Huawei Benefiting from the Nvidia H20 Chips Restriction?
The technical war between the United States and China is not new, but nowadays, after the advancement in technology, it has become intense. The US is looking for ways to hurdle the rapid growth of Huawei’s AI chips. Moreover, it is making efforts to control the AI chips’ advancement in China because this is the key to success in the current era.
The US has imposed a new policy according to which Nvidia can not sell its H20 AI chips to China. Through this step, the Trump administration is trying to stop advanced semiconductor access to China, and this is going to be good news for rivals like Huawei.
On this, the experts comment that the US government has made this step to prevent China’s advancement in making advanced chipsets. Yet, Nvidia’s competitors, like Huawei, are getting more ground to work in advanced chipmaking, and sooner or later, China is going to get what it needs.
US Blocked Nvidia’s H20 Chip Supply to China
Nvidia H20 is the AI chipset made specifically for China according to its demands for AI advancement. Through these, China may get the rapid growth in the AI industry that can target other sectors like health, digital platforms, the medical industry, military operations, and others.
The US government has made a restriction to stop any chance for the AI advancement in China because, till now, no other company has been successful in making such advanced chipsets. China is paying attention to gaining dominance in the AI industry; therefore, it is spending a great amount on the chips.
However, Nvidia has accepted the US restrictions as it had no other options, but the resources say that it is carefully creating the chips that align with the US policies and provide enough power to China as per the contract.
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The big names in the list of Chinese customers, like ByteDance, Tencent, and Alibaba, rely on Nvidia’s H20 chips for the easy and economical AI models. Although H20 does not have the most powerful, it meets the inference requirements of the AI models.
The reason why the US is afraid of sending a huge amount of these chipsets to China is that these can be utilized to create supercomputers and can be used as a weapon against US security.
How is Huawei Benefiting from the Nvidia H20 Chips Restriction?
In China, multiple technical companies like ByteDance rely on Nvidia’s H20 chips for the AI model, and they do not pay more attention to Huawei. However, the recent restriction from China will compel them to find other options like Huawei to make the chips or have the contract with.
The company has been working to create new chips that work like Huawei’s H20. It has been releasing multiple chips to train the AI models. Ascend 910C chips are one of its products, having a 60% efficiency as compared to the H100 chips.
Moreover, the restriction has made things easy for it, and it is targeting to provide even better efficiency. The reports say that it has made the Ascend 920, which provides even more speed and better performance than the Nvidia H20.
The US and China have been the strongest rivals in the AI competition, and both of them are working their best to maintain their position in the war. China is targeting AI and getting better performance to compete with the US, so the US has to take careful steps to be the best.
