Despite US export restrictions, China’s AI chip market has found ways to expand

China's artificial intelligence (AI) chip market is subject to export restrictions imposed by the United States starting in October 2022, which will ban the sale of certain US products to China.

The US initially banned the export of most chips produced by companies such as Nvidia and AMD. During the early October inspection, the companies were still able to export other models to China, such as Nvidia's A800 and H800.

A year later, on October 17, 2023, the U.S. government announced an expansion of controls to “strengthen” the previous ones, meaning that all chip models would be banned from the Chinese market.

The L40S chip, one of Nvidia's top gaming chips, was also recently hit by export restrictions, which took effect on October 24th.

However, on November 9, local Chinese media STAR Market Daily reported that Nvidia plans to release three new chips for China. The report cites people familiar with the matter and says the chips are called HGX H20, L20 PCIe and L2 PCIe.

It has been reported that Nvidia could announce the new chips as early as November 16. Cointelegraph has reached out to Nivea for comment, but has yet to receive a response.

In the year According to a quarterly report from Nvidia, ahead of 2023, China is one of its biggest markets, along with Taiwan and the US.

Related: China's president calls for unity on AI challenges and cyber development

In addition, Chinese companies have turned to domestic companies to meet their demand for AI chips.

In the year On November 7, Reuters reported that Chinese technology company Baidu ordered AI chips from Huawei in August.

According to reports, Baidu has ordered 1,600 Huawei 910B Ascend AI chips for 200 servers. Huawei's 910B chips should be an alternative to Nvidia's A100.

The report said that in October, Huawei delivered more than 60% of Baidu's chip orders, which amounted to approximately 1,000 chips and totaled about 450 million yuan ($61.83 million). The rest of the chips are expected at the end of the year.

Baidu is one of China's leading AI companies. In October, it released the Ernie 4.0 AI system, which it said had overall performance “on par with ChatGPT.”

Over the summer, the Biden administration was reportedly considering increasing restrictions on access to cloud computing services in China.

On Oct. 23, US Undersecretary for Industry and Security Trade Alan Estevez reiterated that fear to reporters at an event in Tokyo, specifically highlighting concerns about its use for military purposes.

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