NVIDIA has slashed prices on server AI-focused H20 GPUs in China. According to information, Big Tech is keeping an eye on competition in the sector and also on Huawei’s growth.
Currently, NVIDIA is having difficulty penetrating the Chinese market. In addition to the price cut for H20 GPUs, NVIDIA also invested in AI chips exclusive to China, as a way of circumventing the US. However, companies in China do not want to use NVIDIA chips.
NVIDIA is the leader when it comes to AI GPUs for data centers and revealed last quarter that servers earn 10x more than gaming. Therefore, China is a central market, if Big Tech wants to break revenue records, driven by data centers and Artificial Intelligence.
NVIDIA H20 GPUs drop in price in China
According to international information, United States sanctions against China are harming NVIDIA’s business. As the sanctions include the export of different GPU models, the NVIDIA specifically worked on H20 GPUs for the Chinese segment.
But NVIDIA’s effort did not bear fruit. Now, NVIDIA has bet on reducing the price and H20 GPUs dropped 10% below the value of the Huawei Ascend 910B AI chip. It remains to be seen whether the price reduction will be enough to increase NVIDIA’s popularity in the country.
Even with NVIDIA’s current efforts, analysts estimate that the company will not be able to gain market share in China. Apparently, the United States government’s action directly harmed NVIDIA.
Among the sanctions, the United States forced NVIDIA to reduce the computing power that H20 GPUs and other solutions offer in China. Therefore, it is no surprise to see companies opting for national solutions when it comes to data centers.
With the current market configuration, It will be difficult for NVIDIA to gain ground in China. This way, Huawei has free space and grows in the country. Over time, the Chinese manufacturer may be able to expand its influence in the surrounding area and begin expanding outside of China.
If this happens, NVIDIA – which dominates the AI-focused data center chip segment – ​​could begin to have real competition on the international stage.
Fonte: Wccftech
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Source: https://www.adrenaline.com.br/nvidia/nvidia-reduz-precos-das-gpus-h20-na-china/
