Chinese authorities have reportedly urged local companies to avoid using NVIDIA's H20 processors, particularly for government-related purposes. This directive was reported by Bloomberg News on Tuesday, citing familiar sources.
This move represents a significant new challenge for NVIDIA in the Chinese market, potentially impacting sales of its specially designed, downgraded AI chips. It signals an escalation of efforts by China to reduce reliance on foreign technology.
The urging to avoid H20 chips could lead to further revenue losses for NVIDIA in China, a market that has already been affected by U.S. export controls. This development complicates NVIDIA's strategy to navigate geopolitical tensions and maintain market presence.
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