Nvidia has developed new chips, the HGX H20, L20 PCle, and L2 PCle, as a workaround to continue selling high-end chips to Chinese companies despite US export restrictions. These chips, while less powerful than previously restricted models, allow Nvidia to maintain its presence in the Chinese market, which contributes a significant portion of its data center business revenue. Nvidia’s adaptability to regulatory constraints is evident in the performance of these chips, which straddle the line between peak performance and adhering to US regulations. The recent ban on Nvidia’s A800 and H800 GPUs will have minimal impact on the company’s financial results due to strong global demand for its products. China’s AI industry relies on companies like Nvidia, but the government is striving to develop its own domestic chip manufacturing industry.
Nvidia Finds Workaround to Continue Selling High-End Chips to Chinese Companies
In order to comply with US export restrictions, Nvidia has developed a solution that allows them to continue selling high-end chips to Chinese companies. Despite the efforts to limit China’s access to advanced technology, Nvidia is set to deliver three new chips – HGX H20, L20 PCle, and L2 PCle – based on its H100 chip.
NVIDIA HGX H20
The HGX H20 is a slightly less powerful version of the H100 chip but still offers considerable power. It boasts a large memory capacity of 96 GB in HBM3 and an impressive bandwidth of 4Tb/s. The chip’s computing performance is robust, with capabilities across various metrics. It also includes a PCIe 5.0 interface and a high-speed NVLINK link.
L20 and L2 PCIe Cards
The L20 and L2 PCIe cards, while less powerful than the original H100, still offer significant performance. The L20 is equipped with 48 GB GDDR6 memory and a bandwidth of 864 GB/s, while the L2 has 24 GB GDDR6 memory and a bandwidth of 300 GB/s. Both cards, powered by the AD102 GPU, deliver solid performance for AI tasks.
These new chips may not match the raw power of Nvidia’s flagship H100, but they are a clever adaptation to regulatory constraints without sacrificing too much on performance.
US Ban and Minimal Impact on Nvidia
The recent US government ban on Nvidia’s A800 and H800 GPUs, which prohibits their export to China, Russia, and Iran, will have minimal impact on Nvidia’s financial results. This is due to strong global demand for the company’s products. Chinese buyers account for 20 to 25% of Nvidia’s data center revenue, and while they may be searching for replacements, they currently have no better option than to continue buying Nvidia’s chips.
China’s AI Efforts and the Rise of Domestic Chip Manufacturing
China heavily relies on companies like Nvidia for its AI efforts, but the government is actively working towards creating a self-sufficient domestic chip manufacturing industry. This may eventually cut off China’s reliance on US AI hardware exports.
AI Solutions for Your Company
If you want to evolve your company with AI and stay competitive, consider leveraging Nvidia’s AI hardware solutions. Here are some practical steps to get started:
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