American technology giant NVIDIA has decided to reduce the prices of H20 AI GPUs, which are artificial intelligence processors, in order to compete with local rivals in the Chinese market.
NVIDIA’s position in China is not what the company hoped for. Despite successfully gaining a share of sales of Hopper GPUs, US sanctions created a difficult situation for the company to move forward.
With the export ban of many GPU and AI accelerator models, NVIDIA is introducing China-compatible H20 AI GPUs to regain market interest. ttı. However, the company is not receiving the attention it expects from Chinese customers and therefore is reluctant to offer competitive prices. concrete steps He decided to throw it away.
It’s rare to see price cuts on NVIDIA’s AI GPUs, but that’s the case when it comes to China. NVIDIA’s H20 AI accelerators reportedly rely on Huawei’s Ascend 910B AI chip, known as the most powerful native solution for AI computing Compared to the previous year, there was a 10% decrease in prices. NVIDIA’s H20 GPUs are abundant in the markets.
Unfortunately, NVIDIA cannot find enough buyers, forcing them to provide discounts to attract the market’s attention. Moreover, a similar price drop has been seen on the Hopper H100 AI GPUs that the company offers through the “black market”, which reflects how large the demand is. It shows that the wage has decreased.
Despite such efforts, analysts predict that even a company like NVIDIA will not be able to quickly cope with this situation. Local solutions have been widely adopted by Chinese businesses, who see them as cheaper and more cost-effective than mainstream options. US regulations have forced NVIDIA to reduce the computing power they offer in the region, and so giant Chinese companies such as Alibaba and Tencent are seeing on-premises alternatives as a better option.
Apparently, NVIDIA’s situation in China is not ideal, and the Chinese markets are thought to have made a significant contribution to the company’s financial success. Considering this, this is a potentially negative may have effects. However, despite this obstacle in China, NVIDIA still managed to see a great demand worldwide, and this was reflected in its latest earnings.
