Chinese AI Chip Market Facing Export Restrictions
The Chinese artificial intelligence (AI) chip market has been affected by export restrictions imposed by the United States in October 2022, prohibiting the sale of certain U.S. products to China. Initially, the U.S. blocked the export of high-level chips from companies like Nvidia and AMD, but a year later, they expanded the controls to include all chip models.
Nvidia’s L40S chip is among those affected by the latest export restrictions, effective on Oct. 24. However, there are reports that Nvidia plans to release three new chips for China – HGX H20, L20 PCIe, and L2 PCIe.
In response to these restrictions, Chinese companies have turned to domestic companies for AI chips. Baidu reportedly ordered 1,600 of Huawei’s 910B Ascend AI chips as an alternative to Nvidia’s A100.
Implications for Chinese AI Companies
Baidu’s order for Huawei’s AI chips highlights a shift away from U.S. suppliers due to the export restrictions. With over 60% of the chip order already delivered by Huawei, this move signals a significant change in sourcing for Chinese AI companies.
Baidu’s recent release of its Ernie 4.0 AI system further demonstrates China’s commitment to developing its own technologies amid increasing export controls from the U.S.
U.S. Considering Further Restrictions
The Biden administration has also expressed consideration of adding restrictions on China’s access to cloud computing services, highlighting ongoing concerns over potential military usage.
This continues a trend of increasing export controls from the U.S., impacting not only the Chinese AI chip market but also other technology sectors in China.
Hot Take: The Future of Chinese AI Chips
As export restrictions continue to impact Chinese access to U.S. technology products, including AI chips, it is clear that domestic production and alternative suppliers are becoming increasingly important for Chinese tech companies. The shift towards reliance on domestic and alternative sources could lead to further innovation and development in China’s tech industry as it seeks self-sufficiency in critical technology areas.
By
By
By