In a bid to navigate complex US export controls, California-based AI semiconductor designer Nvidia, dominating over 90% of China’s $7 billion AI chip market, is working closely with the US government. The company aims to ensure that its new chips designed for the Chinese market comply with the latest export curbs imposed by the United States.
Nvidia CEO Jensen Huang, speaking at a news conference in Singapore, acknowledged the ongoing collaboration with the US government to develop products that align with regulatory requirements. While not confirming or denying reports of a delay in the launch of a new China-focused AI chip, Huang emphasized the company’s commitment to creating products that adhere to the evolving regulations and specified limits.
The new US curbs on chip exports are expected to open doors for Chinese rivals in the AI chip market. In response, Nvidia reportedly notified Chinese customers of a delay in the release of a China-focused AI chip, signaling the challenges the company faces in navigating the shifting regulatory landscape.
Huang revealed that seeking market advice is an integral part of Nvidia’s ongoing process, recognizing Huawei Technologies as a “formidable” competitor. Nvidia’s November earnings report warned of a substantial drop in fourth-quarter sales in China, citing the impact of the new US rules. The uncertainty surrounding the extent of change in Nvidia’s revenue, as China traditionally contributes around 20% to the company’s earnings, adds complexity to the situation.
Simultaneously, Nvidia is in talks with Singapore for potential significant investments. The company is collaborating with Singapore on the development of its own AI Large Language Model (LLM) named Sealion. Singapore, known for its vibrant AI ecosystem, has also announced a $52 million initiative to create Southeast Asia’s first LLM, showcasing the region’s growing importance in the global AI landscape.
The developments come in the wake of US Commerce Secretary Gina Raimondo’s recent appeal to Congress for additional funding beyond her $200 million budget. Raimondo emphasized the critical nature of denying China access to cutting-edge chips for national security, pointing to Nvidia’s chip redesign for the Chinese market as a prime example. The call for increased resources underscores the high-stakes nature of semiconductor technology in US-China relations and the ongoing challenges faced by industry players like Nvidia.
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(via)
