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Nvidia Faces Setback as Launch of AI Chip H20 in China Gets Delayed Due to US Export Rules

Nvidia, a large chip company from California, is facing challenges with the launch of its new artificial intelligence (AI) chip, H20, in China. The chip, designed to comply with stricter US export laws, has been delayed, affecting Nvidia’s competition against companies like Huawei in the Chinese market.

Launch Postponed

Originally expected to be unveiled on November 16, sources reveal that the launch of the H20 chip has been rescheduled for the first quarter of 2023, possibly in February or March. The delay is attributed to difficulties faced by server manufacturers when integrating the H20 chip into their systems.

Export Regulations and Additional Chips

To meet updated US export regulations, Nvidia planned to launch two more chips, L20 and L2, alongside the H20. While the L20 is reportedly on schedule, information about the status of the L2 chip remains unknown. The delay may impact Nvidia’s position in China, where it introduced these chips as alternatives with reduced processing power to comply with US regulations.

Market Challenges and Competitor Opportunities

Nvidia’s dependence on these chips became crucial after stricter US export laws prevented the company from exporting advanced AI chips to China. The delay provides competitors like Huawei with the opportunity to secure orders that Nvidia would have typically received.

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