SINGAPORE - Nvidia's most advanced AI chip it developed for the China market has got off to a weak start, with abundant supply forcing it to be priced below a rival chip from Chinese tech giant Huawei, according to sources familiar with the matter.
That has seen H20 chips being sold in some cases at an over 10% discount to Huawei's Ascend 910B - the most powerful AI chip from a Chinese company - two of the three sources told Reuters, declining to be identified due to the sensitivity of the issue. "Our data centre revenue in China is down significantly from the level prior to the imposition of the new export control restrictions in October," said CFO Colette Kress. "We expect the market in China to remain very competitive going forward."
The H20 became widely available in China last month, with deliveries to clients in little over a month, the sources said.