Nvidia Unveils AI Chips for Chinese Market, Falls Short of Investor Expectations
In Brief
In its quarterly report, Nvidia disclosed a revenue of approximately $20 billion and announced chips developed specifically for the Chinese market.
AI has emerged as a prominent focus for tech investors throughout the year, with major companies highlighting their capabilities in this domain. Notably, Nvidia stands out as one of the few businesses translating this trend into substantial financial gains, which has accelerated since the public release of OpenAI’s ChatGPT, a large language model-based chatbot.
In its recent quarterly report, Nvidia disclosed an anticipated revenue of approximately $20 billion for the current period. While this surpassed the average predictions of $17.9 billion, certain estimates reached as high as $21 billion.
Despite reporting robust growth for the quarter, Nvidia faced investor expectations for even more substantial returns.
The optimistic outlook was rooted in the belief that the AI industry would be a major contributor to Nvidia’s sales. But Nvidia’s performance remains impressive, especially considering the impact of US restrictions on China, which have affected sales.
Nvidia Updates Chips for China to Comply with Restriction Rules
Along with the release of its quarterly report, Nvidia also announced release of chips developed specifically for the Chinese market. This move comes less than a month after US officials implemented stricter regulations on the sale of high-end AI chips to China.
The new chips titled HGX H20, L20 PCIe and L2 PCIe incorporate most of Nvidia’s latest AI features. However, certain measures of their computing power have been scaled back to align with the updated US regulations.
These regulations impose limits on the amount of computing power a chip can possess within a confined size. Additionally, they include a “grey zone,” where chips might still be eligible for shipment to China but require a licence for approval.
In the previous month, the prominent US AI chip giant, whose graphics processing units dominate the AI market, declared that new export restrictions would impede the company from selling two of its modified advanced AI chips—the A800 and H800—both initially designed for the Chinese market to comply with the previous export rules.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
