Nvidia’s Latest China-Specific AI Chip, H20
Pre-orders open for Nvidia’s Latest China-Specific AI Chip, H20, as U.S. Bans Drive Intense Competition with Huawei’s Ascend 910B
Nvidia (NVDA.O) has recently initiated pre-orders for its latest China-specific artificial intelligence (AI) chip, the H20, through distributors who are pricing it at a level comparable to a competing product from Huawei, sources familiar with the matter have revealed. This graphics card is part of Nvidia’s strategy to cater to the Chinese market in response to expanded U.S. bans on high-end chip exports, which aim to impede China’s advancements in AI and sophisticated computing for military applications.
The H20, touted as the most powerful among the three Nvidia chips developed for China, is positioned below Nvidia’s flagship H100 AI chip and the H800, the latter of which faced bans in October. However, despite its capabilities, the specifications for the H20 indicate that it may lag behind Huawei’s Ascend 910B in key areas, as per three unnamed sources.
Nvidia has been pricing H20 orders for distributors in China within a range of $12,000 to $15,000 per card, according to insider information from two sources. Some distributors have already listed the chips with a significant markup towards the lower end of this range, reaching approximately 110,000 yuan ($15,320), contrasting with Huawei’s 910B, which is available for around 120,000 yuan, based on two sources.
Distributors are also offering H20 servers, pre-configured with eight of the AI chips, for approximately 1.4 million yuan. In comparison, servers equipped with eight H800 chips were sold for around 2 million yuan when they launched a year ago.
Sources indicate that H20 products will be available in small batches for delivery in the first quarter of 2024, with larger quantities expected in the second quarter.
Before the U.S. imposed restrictions, Nvidia held over 90% of China’s AI chip market share. However, the company now faces growing competition from domestic rivals, with Huawei’s 910B being widely regarded as the most competitive AI offering within China. Concerns about potential further restrictions on Nvidia’s products due to U.S. sanctions have contributed to the increased popularity of Huawei’s chip.
In terms of specifications, the H20 reportedly falls behind the 910B in FP32 performance, a critical metric measuring the chip’s speed in processing common tasks, with less than half the capability of its rival, as stated by one source. However, the H20 does seem to have an advantage over the 910B in interconnect speed, which measures how quickly data can transfer between chips, according to the same source. This advantage positions the H20 competitively in applications requiring the linking of a large number of chips to function as a system.
Reuters had reported last month that Nvidia intends to commence mass production of the H20 in the second quarter of this year, following a delay in the initial November launch plan. Sources at that time attributed the delay to challenges faced by server manufacturers in integrating the chip.
Nvidia also plans to introduce two other China-specific chips, namely the L20 and the L2. The current status of the rollout for these two chips remains unknown, and as of now, the H20, L20, and L2 are not listed on Nvidia’s official website.
Emphasizing the significance of the Chinese market, Nvidia’s CEO Jensen Huang reportedly visited the company’s offices in Shenzhen, Shanghai, and Beijing last month as part of the annual Lunar New Year celebrations, reflecting the company’s commitment to engaging with its Chinese stakeholders.
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