Nvidia’s most powerful chip has been the H2O, cleared for Chinese sales, has been effectively blocked from the market after the US officials have informed the company that the product would require an export license.
It is also worth mentioning that Nvidia has formulated new technical thresholds, which also guide the growth of the modified chip designs. Those specifications can also result in significant downgrades coming from the original H2O, among which it is included substantially reduced memory capacity, as reported by one of the sources for R.
Another source has reported that customers from the downstream do also have the potential to modify the module configuration in order to adjust the chip’s performance levels. Even more so, Nvidia also declined to comment to that information. The US Commerce Department also did not immediately respond to a request for comment.
China accounted for $17 billion in revenue, or 13% of Nvidia’s total sales, as the fiscal year ended January 26.
As a result to the strategic importance, Nvidia CEO Jensen Huang, has made a trip to Beijing last mounth, all happening just a few days after officials announced the new export license requirements for the H2O chip.
The United States have also restricted exports from Nvidia to China since 2022, due to numerous concerns about their potential military apps. The H2O was also introduced after Washigton made more stronger controls in OCtober 2023.
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