Nvidia to Resume H20 GPU Sales in $7 billion China Market

- Nvidia plans to restart H20 GPU shipments to China as the chip is compliant with U.S. export controls. - The company introduces compliant models to align with regulations and retain market presence. In early 2024, reports indicated that Nvidia plans to begin H20 GPU deliveries to China, as it is compliant with the latest U.S. export controls. Sales of the H20 GPU, which Nvidia specifically developed to meet prior export restrictions, were previously delayed due to server manufacturers' integration issues. As a result, this move marks a crucial step for the semiconductor giant as it seeks to recover from financial setbacks in one of its most profitable markets. In addition to the H20, Nvidia launched two new GPUs, the L20 and L2, which are designed to help the company comply with current U.S. policies and preserve its position in China's $7 billion AI chip sector. To meet regulatory requirements, Nvidia designed these GPUs with significantly reduced performance capabilities. The company is targeting sectors such as smart factories and logistics centers, where AI-driven "digital twin" applications are vital. The L20 and L2 will ship in the second quarter of 2024. Nvidia's actions reflect its strategic approach to managing geopolitical complexities. CEO Jensen Huang affirmed the company’s commitment to adhering to U.S. regulations while also advocating for collaboration between Washington and Beijing to advance global AI innovation. Huang highlighted that China accounts for one-third of the world’s AI developers, making it a critical market for Nvidia’s sustained growth. He further cautioned that overly stringent export restrictions could inadvertently bolster China's domestic semiconductor industry.