NVIDIA’s “China-compliant” H20 AI accelerators could face the next US ban “hammer” after Team Green stopped taking further orders from Chinese customers.
US considers expanding export restrictions by banning NVIDIA’s ‘China-compliant’ H20 AI accelerators
The Biden administration appears to be putting the brakes on approving the sale of NVIDIA’s high-performance AI equipment to hostile countries like China. Now, rumors of a possible ban on H20 AI GPUs are circulating in the market, and Taiwan Economic Daily reports that Team Green has stopped selling accelerators to Chinese companies. NVIDIA is said to have stopped accepting new orders for its H20 accelerators, and while the reason for this has not been disclosed, it is very likely that the company is preparing for a potential review of US trade policy.
Investment bank Jefferies noted that the US may impose further restrictions, including a trade ban on NVIDIA’s H20 AI GPUs, when it reviews its semiconductor export policy in October. If the H20 ban goes into effect, it is estimated that NVIDIA could lose up to $12 billion in revenue from mainland China alone, which would be a major blow to the company’s sustainability in the domestic market.
After the ban of H100, NVIDIA’s H20 has proven to be a tremendous alternative and has attracted the interest of tech giants across all regions. Therefore, the ban will have a huge impact on NVIDIA’s business in China. It is important to note that nothing has been officially announced as of now. Team Green is said to be pressuring the US government not to go ahead with the “H20 ban” decision, but given past experience, it would not be wrong to say that this particular move is imminent.
From a broader perspective, export control policies implemented by the United States over the past year or so have not worked well in limiting the impact of AI development in China, given that individuals and organizations have found new “loopholes” to compensate. One example is the recent boom in GPU rental services, where companies established in countries such as the UAE are offering Chinese customers computing rental options based on NVIDIA’s cutting-edge AI accelerators.
