Latest news with #GPU
The National
18 hours ago
- Business
- The National
Nvidia defends GPU sales to China amid criticism from Democratic senators
Nvidia has defended itself against recent criticism over a decision by President Donald Trump's administration to grant licences to the company to sell its H20 graphics processing unit (GPU) to China. The response comes after a group of Democratic senators on Monday urged the Commerce Secretary Howard Lutnick, who largely crafts export policies, to reverse course on the licences. The lawmakers said a decision to sell H20 chips to China was "an abrupt departure" from the administration's position in April that Beijing's access to the processors posed a serious national security risk. "And it undermines the administration's recent Al Action Plan, which purports to strengthen export control efforts on Al compute,' the letter states, referring to Mr Trump's AI strategy that included 90 federal policy actions. The senators also warned that such policy reversals would bolster China's push to use AI to 'strengthen military systems'. The letter is the latest in a back-and-forth battle over how to best protect and promote US AI technology. 'The H20 helps America win the support of developers worldwide, promoting America's economic and national security,' an Nvidia representative told The National. 'It does not enhance anyone's military capabilities, and the US government has full visibility and authority over every H20 transaction.' Shortly after a trip to Beijing this month, Nvidia's chief executive Jensen Huang highlighted the Trump administration's assurances about resuming sales of the H20 to China, and said deliveries would begin soon. The H20 is designed to comply with US regulations that seek to prevent powerful AI technology from being used by countries it views as adversaries. But in recent years, and particularly during former president Joe Biden's administration, the US has sought to clamp down on the export of AI technologies to a greater degree, especially CPUs and GPUs, which have become critical for countries seeking to build up AI infrastructure. Nvidia came out in January against the stronger export controls proposed by Mr Biden, saying these undermined US leadership in AI with a 'regulatory morass'. Since his inauguration, Mr Trump has taken a softer approach to AI-related export controls. Recent deals announced with the UAE to build an AI data centre, which also included security stipulations to prevent the potential diffusion of US technology to adversarial countries, was widely seen as a win for US technology companies that have largely opposed strict export policies. Despite efforts in recent years to prevent the diffusion of US AI technology, some analysts have cast doubt on the effectiveness of the overall policy. A new report from Jefferies, an investment banking and capital market firm based in New York, indicated that strict US export policies had prompted China to recalibrate and build up its own chip-making capability, with companies like Huawei and Semiconductor Manufacturing International Corporation making strides. Regardless, in their letter to Mr Lutnick, the senators maintained that 'restricting access to leading-edge chips has been the defining barrier for China's efforts to achieve Al parity', expressing concern that the Trump administration would make further exceptions to loosen various export policies it once advocated. 'This administration is permitting adversaries access to technologies critical to national security as part of trade discussions without consultation or input from Congress,' they wrote. A spokesperson with the US Department of Commerce said Biden administration didn't impose 'any restrictions on the H20 whatsoever and they flowed freely into China,' adding that the Trump White House was the first to implement a licence requirement for the exports to Beijing. 'The Trump administration will consider any H20 licence applications carefully, accounting for both the benefits and the costs of potential exports from America and considering the views of experts across the US Government,' the Commerce Department spokesperson told The National. White House officials have recently indicated that policies seeking to prevent the export of US AI technology might ultimately backfire.
Time of India
19 hours ago
- Automotive
- Time of India
Nvidia orders 300,000 H20 chips from TSMC due to robust China demand
Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the US firm to change its mind about just relying on its existing stockpile. The Trump administration this month allowed Nvidia to resume sales of H20 graphics processing units (GPUs) to China, reversing an effective ban imposed in April designed to keep advanced AI chips out of Chinese hands due to national security concerns. Nvidia developed the H20 specifically for the Chinese market after US export restrictions on its other AI chipsets were imposed in late 2023. The H20 does not have as much computing power as Nvidia's H100 or its new Blackwell series sold in markets outside China. The new orders with Taiwan's TMSC would add to existing inventory of 600,000 to 700,000 H20 chips, according to the sources who were not authorised to speak to media and declined to be identified. For comparison purposes, Nvidia sold around 1 million H20 chips in 2024, according to US research firm SemiAnalysis. Nvidia CEO Jensen Huang said during a trip to Beijing this month that the level of H20 orders it received would determine whether production would begin again, adding that any restart to the supply chain would take nine months. The Information reported after Huang's trip that Nvidia had told customers it had limited H20 stocks available and it had no immediate plans to restart wafer production for the GPU. Nvidia needs to obtain export licenses from the US government to ship the H20 chips. It said in mid-July it had been assured by authorities that it would get them soon. The US Department of Commerce has yet to approve those licenses, one of the sources and a third source said. Nvidia on Monday declined to comment on the new orders or the status of its license applications. TSMC declined to comment. The US Commerce Department did not immediately respond to a request for comment. Nvidia has asked Chinese companies interested in purchasing Nvidia H20 chips to submit new documentation including order volume forecasts from clients, said one of the sources and a fourth source. Key product in US-Sino trade war The Trump administration said the resumption of H20 sales was part of negotiations with China over rare earth magnets - elements essential for many industries and which Beijing had limited exports of as trade war tensions escalated. The decision drew bipartisan condemnation from US legislators who are worried that giving China access to the H20 will impede US efforts to maintain its lead in AI technology. But Nvidia and others argue that it is important to retain Chinese interest in its chips - which work with Nvidia's software tools - so that developers do not completely switch over to offerings from rivals like Huawei. Before the April ban, Chinese technology giants including Tencent, ByteDance and Alibaba substantially increased H20 orders as they deployed DeepSeek's cost-effective AI models as well as their own models. The popularity of Nvidia products in China, despite the advent of rival, albeit less powerful, offerings from Huawei, has been underscored by a boom in repair demand for its other banned GPUS - many of which have been smuggled into the country. After the April ban on H20 sales, Nvidia warned that it would have to write off $5.5 billion in inventories, while Huang told the Stratechery podcast that the company also had to forgo $15 billion in potential sales.
Yahoo
a day ago
- Business
- Yahoo
Nvidia Surges Ahead in China with 300,000 Chip H20 Deal at TSMC
July 29 - Nvidia (NASDAQ:NVDA) last week ordered 300,000 H20 AI chips from Taiwan Semiconductor Manufacturing (NYSE:TSM) to bolster its supply for China, Reuters sources say. This fresh order adds to an existing stockpile of roughly 600,000700,000 units as demand climbs. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The H20 arrived after U.S. regulators lifted an April ban on Nvidia's AI processors for China. Earlier this month, the Trump administration cleared the company to resume H20 GPU shipments under a modified export regime. Despite that approval, Nvidia still needs final export licenses from the Commerce Department, and sources report those are still pending. Designed specifically for the Chinese market, the H20 delivers lower performance than Nvidia's global H100 and Blackwell series to meet U.S. trade rules. By placing a large new order, Nvidia signals strong end?customer uptake in China's fast?growing AI sector. Analysts say the move highlights Nvidia's push to secure capacity at TSMC amid fierce competition for advanced chips. As China's cloud and tech firms race to deploy AI services, Nvidia looks to keep its AI pipeline full, and its lead intact. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
a day ago
- Automotive
- Time of India
Nvidia orders 300,000 H20 chips from TSMC due to robust China demand
Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the US firm to change its mind about just relying on its existing stockpile. The Trump administration this month allowed Nvidia to resume sales of H20 graphics processing units (GPUs) to China, reversing an effective ban imposed in April designed to keep advanced AI chips out of Chinese hands due to national security concerns. Nvidia developed the H20 specifically for the Chinese market after US export restrictions on its other AI chipsets were imposed in late 2023. The H20 does not have as much computing power as Nvidia's H100 or its new Blackwell series sold in markets outside China. The new orders with Taiwan's TMSC would add to existing inventory of 600,000 to 700,000 H20 chips, according to the sources who were not authorised to speak to media and declined to be identified. For comparison purposes, Nvidia sold around 1 million H20 chips in 2024, according to US research firm SemiAnalysis. Nvidia CEO Jensen Huang said during a trip to Beijing this month that the level of H20 orders it received would determine whether production would begin again, adding that any restart to the supply chain would take nine months. The Information reported after Huang's trip that Nvidia had told customers it had limited H20 stocks available and it had no immediate plans to restart wafer production for the GPU. Nvidia needs to obtain export licenses from the US government to ship the H20 chips. It said in mid-July it had been assured by authorities that it would get them soon. The US Department of Commerce has yet to approve those licenses, one of the sources and a third source said. Nvidia on Monday declined to comment on the new orders or the status of its license applications. TSMC declined to comment. The US Commerce Department did not immediately respond to a request for comment. Nvidia has asked Chinese companies interested in purchasing Nvidia H20 chips to submit new documentation including order volume forecasts from clients, said one of the sources and a fourth source. Key product in US-Sino trade war The Trump administration said the resumption of H20 sales was part of negotiations with China over rare earth magnets - elements essential for many industries and which Beijing had limited exports of as trade war tensions escalated. The decision drew bipartisan condemnation from US legislators who are worried that giving China access to the H20 will impede US efforts to maintain its lead in AI technology. But Nvidia and others argue that it is important to retain Chinese interest in its chips - which work with Nvidia's software tools - so that developers do not completely switch over to offerings from rivals like Huawei. Before the April ban, Chinese technology giants including Tencent, ByteDance and Alibaba substantially increased H20 orders as they deployed DeepSeek's cost-effective AI models as well as their own models. The popularity of Nvidia products in China, despite the advent of rival, albeit less powerful, offerings from Huawei, has been underscored by a boom in repair demand for its other banned GPUS - many of which have been smuggled into the country. After the April ban on H20 sales, Nvidia warned that it would have to write off $5.5 billion in inventories, while Huang told the Stratechery podcast that the company also had to forgo $15 billion in potential sales.
Indian Express
a day ago
- Business
- Indian Express
Nvidia orders 300,000 H20 chips from TSMC due to robust China demand
Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile. The Trump administration this month allowed Nvidia to resume sales of H20 graphics processing units (GPUs) to China, reversing an effective ban imposed in April designed to keep advanced AI chips out of Chinese hands due to national security concerns. Nvidia developed the H20 specifically for the Chinese market after U.S. export restrictions on its other AI chipsets were imposed in late 2023. The H20 does not have as much computing power as Nvidia's H100 or its new Blackwell series sold in markets outside China. The new orders with Taiwan's TMSC would add to existing inventory of 600,000 to 700,000 H20 chips, according to the sources who were not authorised to speak to media and declined to be identified. For comparison purposes, Nvidia sold around 1 million H20 chips in 2024, according to U.S. research firm SemiAnalysis. Nvidia CEO Jensen Huang said during a trip to Beijing this month that the level of H20 orders it received would determine whether production would begin again, adding that any restart to the supply chain would take nine months. The Information reported after Huang's trip that Nvidia had told customers it had limited H20 stocks available and it had no immediate plans to restart wafer production for the GPU. Nvidia needs to obtain export licenses from the U.S. government to ship the H20 chips. It said in mid-July it had been assured by authorities that it would get them soon. The U.S. Department of Commerce has yet to approve those licenses, one of the sources and a third source said. Nvidia on Monday declined to comment on the new orders or the status of its license applications. TSMC declined to comment. The U.S. Commerce Department did not immediately respond to a request for comment. Nvidia has asked Chinese companies interested in purchasing Nvidia H20 chips to submit new documentation including order volume forecasts from clients, said one of the sources and a fourth source. KEY PRODUCT IN US-SINO TRADE WAR The Trump administration said the resumption of H20 sales was part of negotiations with China over rare earth magnets – elements essential for many industries and which Beijing had limited exports of as trade war tensions escalated. The decision drew bipartisan condemnation from U.S. legislators who are worried that giving China access to the H20 will impede U.S. efforts to maintain its lead in AI technology. But Nvidia and others argue that it is important to retain Chinese interest in its chips – which work with Nvidia's software tools – so that developers do not completely switch over to offerings from rivals like Huawei. Before the April ban, Chinese technology giants including Tencent, ByteDance and Alibaba substantially increased H20 orders as they deployed DeepSeek's cost-effective AI models as well as their own models. The popularity of Nvidia products in China, despite the advent of rival, albeit less powerful, offerings from Huawei, has been underscored by a boom in repair demand for its other banned GPUS – many of which have been smuggled into the country. After the April ban on H20 sales, Nvidia warned that it would have to write off $5.5 billion in inventories, while Huang told the Stratechery podcast that the company also had to forgo $15 billion in potential sales.
