Nvidia Expands AI Chip Sales in China

Nvidia Expands AI Chip Sales in China

Oscar Chen
1 min read

Nvidia's AI Chip Sales Defy US Controls in China

Nvidia is poised to generate $12 billion from AI chip sales in China this year, despite US export controls. Over 1 million of its new H20 chips, priced between $12,000 and $13,000, are set to be shipped to China, designed to comply with these restrictions. This is a bold move that challenges US policy and exerts pressure on local competitors like Huawei. The rise in revenue is testament to Nvidia's consistent dominance in the Chinese AI market.

Key Takeaways

  • Nvidia anticipates $12 billion in AI chip sales in China, defying US export controls.
  • The H20 chips, priced $12,000-$13,000, are reported to outperform Huawei's Ascend 910B in practical applications.
  • Nvidia's CEO offloaded shares worth $169 million amidst a market value surge to $3 trillion.


This strategic move by Nvidia to adapt the H20 chip to comply with US export controls has reinforced its position in China's AI market, despite a decline in chip performance. This not only challenges US policy but also pressures local competitors like Huawei. The influx of $12 billion from these sales impacts global chip market dynamics, potentially reshaping supply chains and influencing trade policies. Nvidia's continued dominance underscores its robust market strategy and technological edge.

Did You Know?

  • H20 Chips:
  • The H20 chips are a specific AI chip model designed by Nvidia to comply with US export controls while remaining competitive in the Chinese market.
  • US Export Controls on AI Technology:
  • These controls are imposed to restrict the sale and distribution of advanced technologies, including AI chips, to countries like China, challenging companies like Nvidia to find ways to continue their business in these markets while adhering to the restrictions.
  • Nvidia's Ecosystem and Software Advantage:
  • Nvidia's dominance in the Chinese AI chip market is not solely due to the hardware performance of its chips, but also because of its established ecosystem and software. This provides a significant competitive edge despite regulatory challenges.

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