Nvidia Will Continue To Work With Its Chinese Costumers

General news News Tech Tech News 10/22/2023

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TECH NEWS – Nvidia CEO Jensen Huang responded to several issues, including the US government’s ban on exports to China.

The Biden administration recently changed what is banned from export to China. Now some artificial intelligence chips are on the banned list. The US believes that China could gain a military advantage because of the rapidly developing AI, and that is why the Biden administration is blocking the export of Nvidia’s H800 and A800. Huang said in an interview that Nvidia respects the U.S. government’s thinking (putting the country’s defense first rather than business success) and will act as Biden’s request.

Nvidia is looking to expand internationally, while serving its Chinese customers is not a secondary concern. Huang also hinted that they need to act “forcefully,” which may put them somewhat behind Chinese consumers on the “green” list. Nvidia said that in-house Chinese AI products could also provide good competition, and Huawei is one of them. But Nvidia should also be concerned, because if the Chinese are serious about catching up with technology, there could be a strong push for development in the authoritarian country. According to iFlytek, a Chinese artificial intelligence company, Huawei’s Ascend AI GPUs are on par with Nvidia’s products, and the U.S. bans could see Huawei cash in to meet demand.

As such, Huawei could be a formidable competitor to Nvidia in China, and Huawei has the backing of the Chinese government. Continued production of AI GPUs and development of software resources could help Nvidia take a back seat in the country. For the company, Chinese consumers are a big part of its revenue, so it will have to find a way to raise money from elsewhere.

So don’t be surprised if Nvidia decides to raise the price of its graphics cards, which can also be used for artificial intelligence, as a result. The GeForce RTX 4090 is now on average $50 more expensive in the US, while in Europe the RTX 4090 Founders Edition is €30 more expensive. And this could be just the beginning…

Source: WCCFTech

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Angyal Anikó

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