Nvidia to Compete with Huawei for AI Chips in Chinese Markets

Nvidia has started taking pre-orders for a new China-specific artificial intelligence (AI) chip from distributors who are pricing it on par with a rival product from Huawei, sources familiar with the matter said.

The graphics card, the H20, is the most powerful of three Nvidia has been developing for the Chinese market after the U.S. expanded bans on high-end chip exports, aiming to hamper China's ability to develop AI and sophisticated computers for its military. The H20 will naturally deliver less computing power than Nvidia's flagship H100 AI chip and the H800 - the later China-specific card banned in October.

However, specifications for the H20 also appear to indicate it is less powerful than Huawei's Ascend 910B in some key areas, according to three sources who were not authorized to speak to the media and declined to be identified. According to two sources, Nvidia has recently been pricing orders for H20 distributors in China in the range of $12,000 to $15,000 per card.

One of the sources said some distributors have started advertising the chips with a significant markup to the lower end of that range at about 110,000 yuan ($15,320). By comparison, two sources said that Huawei's 910B is being sold for around 120,000 yuan.