Nvidia Expected to Make $12 Billion Selling 1 Million H20 AI Chips to China This Year

Nvidia expects to make $12 billion this year from selling more than 1 million H20 AI chips to China, even though they can’t be exported and don’t work as well as higher-end models.

This year, the US chip company Nvidia will send more than a million new H20 accelerator chips to China, which will bring in more than $12 billion for the business.

Market study firm SemiAnalysis’s most recent forecast data shows. Starting in 2022, the US has limited Nvidia’s ability to send advanced AI chips to China because of rules about export control.

Based on the H100, Nvidia made the H20, a smaller GPU just for the Chinese market. However, it has less than 15% of the AI ability of the high-performance chip.

SemiAnalysis analysts said that the H20 chip is now being shipped in large quantities and is becoming more popular with Chinese buyers, even though it doesn’t work as well as the H100 chip from the US.