China has now advised AI startups to refrain from buying AI chips from NVIDIA to reduce the influence of US policies on regional markets.
China Takes Action to Bring Production of AI Computing Power to Domestic Market, Urges Startups to Turn to In-House Alternatives
The Biden administration is doing everything it can to suppress the growth of China’s AI industry, whether by limiting local semiconductor development or even changing export policies to prevent China from getting access to high-end AI hardware. Although China found many workarounds to these US policies, such as GPU leasing and tapping into the black market, AI tech giants such as ByteDance and Alibaba were greatly affected by the restrictions, ultimately creating new problems for the government and the growth of AI-focused businesses. .
Bloomberg now report that Chinese regulators recommended AI startups stop purchasing NVIDIA’s H20 AI accelerator, arguing that a potential ban would create new problems for the business. The move is an attempt to push Chinese AI startups to the global forefront without them relying on technology from the West and instead focusing on resources available through internal resources.
We recently reported on the possibility that the US government might do just that bans export of NVIDIA H20 AI GPUs to China even though they were initially “obedient to China.” Not only that, the Biden administration has made several attempts to thwart China’s AI market by banning a series of NVIDIA accelerators and equipment, such as the A100 and H100. Keeping this in mind, many companies, such as Huawei and Birentech, have brought their in-house solutions to the market, and they have gained good sales traction in the past, but the dependency on NVIDIA is still huge.
The importance of Chinese consumers to NVIDIA is huge, considering the region accounted for 12% of the company’s quarterly revenue, which was about $3.7 billion. So, Team Green can’t afford a blanket export ban, but looking at how things are going, NVIDIA will have to introduce appropriate solutions whenever there is a policy revision, or they might have to say goodbye to their company. business in China.