🔥 Nvidia Cuts AI Chip Prices for the Chinese Market
posted 24 May 2024
According to Reuters, Nvidia has reduced the prices of its AI chips to undercut those offered by Chinese tech giant Huawei.
This pricing strategy follows the U.S. government's tightening of export rules for advanced AI chips, which spurred Nvidia to create products specifically tailored for the Chinese market.
Late last year, Nvidia introduced three chips designed specifically for sale in China, adhering to new regulations that limit the computing power of exported AI semiconductors.
By May, Reuters' sources in Beijing reported a substantial supply of Nvidia chips in the local market. The price reduction, indicating a surplus, suggests that there is a weak demand for American components. The prices are approximately 10% lower than similar offerings by Huawei.
CCID Consulting, a local research firm, forecasts significant growth for the Chinese AI industry in the next decade. They predict the market could reach $240.4 billion, representing about 30% of global sales.
However, some experts warn that Nvidia might find it increasingly difficult to compete with local companies for a share of this lucrative market.
This pricing strategy follows the U.S. government's tightening of export rules for advanced AI chips, which spurred Nvidia to create products specifically tailored for the Chinese market.
Late last year, Nvidia introduced three chips designed specifically for sale in China, adhering to new regulations that limit the computing power of exported AI semiconductors.
By May, Reuters' sources in Beijing reported a substantial supply of Nvidia chips in the local market. The price reduction, indicating a surplus, suggests that there is a weak demand for American components. The prices are approximately 10% lower than similar offerings by Huawei.
CCID Consulting, a local research firm, forecasts significant growth for the Chinese AI industry in the next decade. They predict the market could reach $240.4 billion, representing about 30% of global sales.
However, some experts warn that Nvidia might find it increasingly difficult to compete with local companies for a share of this lucrative market.
“Nvidia is walking a fine line and working on a balancing act between maintaining the Chinese market and navigating U.S. tensions. Nvidia is definitely preparing for the worst in the long term,” said market analyst Hebe Chen, quoted by Reuters.
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