China’s artificial intelligence (AI) sector is being “choked” by a shortage of graphics processing units (GPUs) and other types of chips
As of last month, the country had at least 79 large language models with more than 1 billion parameters, according to the state-affiliated Institute of Scientific and Technical Information of China, each of which require hundreds if not thousands of advanced chips to train.
However, market leader Nvidia has been barred by Washington from selling its top-notch A100 and H100 GPUs to clients in China, so it created tailor-made, lower-end versions for Chinese clients.

https://www.scmp.com/tech/article/3224061/chinas-big-tech-firms-scramble-advanced-chips-amid-us-sanctions-and-chatgpt-craze?utm_medium=email&utm_source=cm&utm_campaign=enlz-insidechinatech&utm_content=20230616&tpcc=enlz-insidechinatech&UUID=f9aaf50d26626de042873bfe2733d91d&tc=1&CMCampaignID=d6d7280b1fcd972f186e2ed7ea691492

China’s AI sector ‘choked’ by lack of advanced chips, state media warns

China’s artificial intelligence (AI) sector is being “choked” by a shortage of graphics processing units (GPUs) and other types of chips As of last month, the country had at least 79 large language models with more than 1 billion parameters, according to the state-affiliated Institute of Scientific and Technical Information of China, each of which require hundreds if not thousands of advanced chips to train. However, market leader Nvidia has been barred by Washington from selling its top-notch A100 and H100 GPUs to clients in China, so it created tailor-made, lower-end versions for Chinese clients.  https://www.scmp.com/tech/article/3224061/chinas-big-tech-firms-scramble-advanced-chips-amid-us-sanctions-and-chatgpt-craze?utm_medium=email&utm_source=cm&utm_campaign=enlz-insidechinatech&utm_content=20230616&tpcc=enlz-insidechinatech&UUID=f9aaf50d26626de042873bfe2733d91d&tc=1&CMCampaignID=d6d7280b1fcd972f186e2ed7ea691492

Cyril

A top executive of Chinese tech giant Tencent Holdings said the company’s existing stockpile of artificial intelligence chips should allow it to continue training a few more generations of AI models, despite tightening U.S. restrictions on the export of Nvidia chips to #🇨🇳 ChinA.I. 🤖🧠🦾🤖 

“We have a pretty strong stockpile of chips we acquired previously,” Tencent President Martin Lau said during a conference call with analysts Wednesday after the company reported its quarterly results. Lau also noted that, even with a relatively small cluster of chips, it is possible to achieve very good training results.

Lau’s comments come after the Trump administration last month banned the export of Nvidia’s H20 chips to China in the latest step to further limit China’s access to Nvidia’s AI chips.

Lau said there is a lot of software work that the company can do in order to improve the efficiency of AI inference, so the operation of AI models will require fewer chips. He also said that the company could potentially make use of other AI chips that aren’t subject to the U.S. export restrictions, such as those made by Chinese chip developers.

https://finance.yahoo.com/news/tencent-says-enough-high-end-043003341.html#:~:text=Tencent's%20president%20Martin%20Lau%20says,few%20more%20generations%20going%20forward.%22

🇨🇳 ChinA.I. 🤖🧠🦾🤖

A top executive of Chinese tech giant Tencent Holdings said the company’s existing stockpile of artificial intelligence chips should allow it to continue training a few more generations of AI models, despite tightening U.S. restrictions on the export of Nvidia chips to #🇨🇳 ChinA.I. 🤖🧠🦾🤖   “We have a pretty strong stockpile of chips we acquired previously,” Tencent President Martin Lau said during a conference call with analysts Wednesday after the company reported its quarterly results. Lau also noted that, even with a relatively small cluster of chips, it is possible to achieve very good training results.  Lau’s comments come after the Trump administration last month banned the export of Nvidia’s H20 chips to China in the latest step to further limit China’s access to Nvidia’s AI chips.  Lau said there is a lot of software work that the company can do in order to improve the efficiency of AI inference, so the operation of AI models will require fewer chips. He also said that the company could potentially make use of other AI chips that aren’t subject to the U.S. export restrictions, such as those made by Chinese chip developers.  https://finance.yahoo.com/news/tencent-says-enough-high-end-043003341.html#:~:text=Tencent's%20president%20Martin%20Lau%20says,few%20more%20generations%20going%20forward.%22

Tencent's president said the company can rely on a "pretty strong stockpile of chips that we acquired previously."

Tencent says it has enough high-end chips to train AI for 'generations' even if the US cuts it off

A U.S. lawmaker plans to introduce new legislation to track the location of artificial intelligence chips, particularly those from Nvidia, Reuters reported.

The initiative aims to address concerns that Nvidia’s chips, essential for developing advanced AI systems, continue to reach China on a large scale despite export restrictions imposed by both the Trump and Biden administrations. Nvidia said previously that it is unable to track its chips once they are sold.

U.S. Representative Bill Foster, a Democrat from Illinois and former particle physicist, plans to introduce the bill in the coming weeks, according to Reuters. The bill will focus on two main areas: ensuring that chips are used only in locations authorized by export control license and preventing chips from powering on if they lack the appropriate license, Foster said in an interview with Reuters.

Foster’s proposed bill would require the Commerce Department to establish regulations within six months to improve oversight and prevent the unauthorized distribution of the critical technology.

Last month, the Select Committee on the Chinese Communist Party, a bipartisan House committee focused on China, also called for similar geo-tracking measures to ensure that U.S. export controls are not abused by smuggling.

The technology to track chips’ locations already exists. For instance, Google tracks the location of its in-house AI chips and other components within its extensive network of data centers for security purposes, Reuters reported citing two sources with direct knowledge of the operations.

https://www.reuters.com/world/us/us-lawmaker-targets-nvidia-chip-smuggling-china-with-new-bill-2025-05-05/?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124

The US imposed more chip export limits on Nvidia and AMD, stopping even more semiconductors from flowing to China as the AI race intensifies

https://www.wsj.com/economy/trade/trump-chip-exports-nvidia-h20-china-amd-d2c4c866?st=QxJ1oZ&reflink=desktopwebshare_permalink&ref=platformer.news

The US imposed more chip export limits on Nvidia and AMD, stopping even more semiconductors from flowing to China as the AI race intensifies  https://www.wsj.com/economy/trade/trump-chip-exports-nvidia-h20-china-amd-d2c4c866?st=QxJ1oZ&reflink=desktopwebshare_permalink&ref=platformer.news

New chip restrictions for Nvidia and AMD show the Trump administration’s determination to battle China on tech advances as well as trade.

U.S. Tries to Crush China’s AI Ambitions With Chips Crackdown

Nate

A U.S. lawmaker plans to introduce new legislation to track the location of artificial intelligence chips, particularly those from Nvidia, Reuters reported.  The initiative aims to address concerns that Nvidia’s chips, essential for developing advanced AI systems, continue to reach China on a large scale despite export restrictions imposed by both the Trump and Biden administrations. Nvidia said previously that it is unable to track its chips once they are sold.  U.S. Representative Bill Foster, a Democrat from Illinois and former particle physicist, plans to introduce the bill in the coming weeks, according to Reuters. The bill will focus on two main areas: ensuring that chips are used only in locations authorized by export control license and preventing chips from powering on if they lack the appropriate license, Foster said in an interview with Reuters.  Foster’s proposed bill would require the Commerce Department to establish regulations within six months to improve oversight and prevent the unauthorized distribution of the critical technology.  Last month, the Select Committee on the Chinese Communist Party, a bipartisan House committee focused on China, also called for similar geo-tracking measures to ensure that U.S. export controls are not abused by smuggling.  The technology to track chips’ locations already exists. For instance, Google tracks the location of its in-house AI chips and other components within its extensive network of data centers for security purposes, Reuters reported citing two sources with direct knowledge of the operations.  https://www.reuters.com/world/us/us-lawmaker-targets-nvidia-chip-smuggling-china-with-new-bill-2025-05-05/?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124

A U.S. lawmaker plans to introduce legislation in coming weeks to verify the location of artificial-intelligence chips like those made by Nvidia after they are sold.

Exclusive: US lawmaker targets Nvidia chip smuggling to China with new bill

Tasia

Nvidia’s China business is evaporating.

The US chip giant on Tuesday disclosed that Washington would now require a licence to export its H20 chips to China. The company expects the move to cost it US$5.5 billion, which includes charges for inventory, purchase commitments and related reserves.

The H20 is a graphics processing unit tailored for the Chinese market after earlier export controls imposed by the administration of former US president Joe Biden. While the H20 is less powerful than Nvidia chips sold outside China, it is still good enough for training and running large language models (LLMs). 

Nvidia’s China business was likely to “fall to nearly zero”, Morningstar analyst Brian Colello said in a research note. “We don’t foresee a turnaround any time soon.” 

https://www.scmp.com/news/world/united-states-canada/article/3306680/nvidia-expects-us55-billion-hit-us-targets-chips-sent-china?utm_medium=email&utm_source=cm&utm_campaign=enlz-insidechinatech&utm_content=20250418&tpcc=enlz-insidechinatech&UUID=f9aaf50d26626de042873bfe2733d91d&tc=1&CMCampaignID=91c7b2fab75e12509c09dda62ee259ec

 #🇨🇳 ChinA.I. 🤖🧠🦾🤖

Nvidia’s China business is evaporating.  The US chip giant on Tuesday disclosed that Washington would now require a licence to export its H20 chips to China. The company expects the move to cost it US$5.5 billion, which includes charges for inventory, purchase commitments and related reserves.  The H20 is a graphics processing unit tailored for the Chinese market after earlier export controls imposed by the administration of former US president Joe Biden. While the H20 is less powerful than Nvidia chips sold outside China, it is still good enough for training and running large language models (LLMs).   Nvidia’s China business was likely to “fall to nearly zero”, Morningstar analyst Brian Colello said in a research note. “We don’t foresee a turnaround any time soon.”   https://www.scmp.com/news/world/united-states-canada/article/3306680/nvidia-expects-us55-billion-hit-us-targets-chips-sent-china?utm_medium=email&utm_source=cm&utm_campaign=enlz-insidechinatech&utm_content=20250418&tpcc=enlz-insidechinatech&UUID=f9aaf50d26626de042873bfe2733d91d&tc=1&CMCampaignID=91c7b2fab75e12509c09dda62ee259ec   #🇨🇳 ChinA.I. 🤖🧠🦾🤖

Export licences are now required for the company’s H20 artificial intelligence chip, which have been seeing growing Chinese demand.

Nvidia expects US$5.5 billion hit as US targets chips sent to China

President Donald Trump has decided to pause new restrictions on artificial intelligence chips Nvidia sells in China following a dinner that CEO Jensen Huang attended with Trump in Mar-a-Lago last week, NPR reported. Trump changed course after Huang promised new investments in AI data centers in the U.S., the report said.

The White House had been planning more restrictions on the chips, called H20s, as part of an effort to make it harder for Chinese firms and military agencies to develop AI. The pause on new export controls is great news for Nvidia after Chinese firms placed at least $16 billion of orders for H20 server chips in the first three months of the year, The Information reported, in part due to concerns about new U.S. restrictions on the chips.

Spokespeople for the White House and Nvidia didn’t immediately respond to requests for comment.

https://www.npr.org/2025/04/09/nx-s1-5356480/nvidia-china-ai-h20-chips-trump?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124

 #🇨🇳 ChinA.I. 🤖🧠🦾🤖

Chinese firms are rushing to buy Nvidia's H20 AI chips before a potential US ban, creating a delivery dilemma for Nvidia.

https://www.theinformation.com/articles/nvidia-faces-dilemma-chinese-firms-rush-order-16-billion-new-ai-chips?offer=exp-ann-25&utm_campaign=Expansion%3A+Nvidia+ch&utm_content=7659&utm_medium=email&utm_source=cio&utm_term=5265&rc=gzsl71

 #🇨🇳 ChinA.I. 🤖🧠🦾🤖

Chinese firms are rushing to buy Nvidia's H20 AI chips before a potential US ban, creating a delivery dilemma for Nvidia.  https://www.theinformation.com/articles/nvidia-faces-dilemma-chinese-firms-rush-order-16-billion-new-ai-chips?offer=exp-ann-25&utm_campaign=Expansion%3A+Nvidia+ch&utm_content=7659&utm_medium=email&utm_source=cio&utm_term=5265&rc=gzsl71   #🇨🇳 ChinA.I. 🤖🧠🦾🤖

Chinese companies including ByteDance, Alibaba Group and Tencent Holdings have placed at least $16 billion in orders for Nvidia’s H20 server chips for running artificial intelligence in the first three months of the year, ahead of a potential U.S. ban on sales of the chip in China, according to ...

Nvidia Faces Dilemma After Chinese Firms Rush to Order $16 Billion in New AI Chips

Bobby

President Donald Trump has decided to pause new restrictions on artificial intelligence chips Nvidia sells in China following a dinner that CEO Jensen Huang attended with Trump in Mar-a-Lago last week, NPR reported. Trump changed course after Huang promised new investments in AI data centers in the U.S., the report said.  The White House had been planning more restrictions on the chips, called H20s, as part of an effort to make it harder for Chinese firms and military agencies to develop AI. The pause on new export controls is great news for Nvidia after Chinese firms placed at least $16 billion of orders for H20 server chips in the first three months of the year, The Information reported, in part due to concerns about new U.S. restrictions on the chips.  Spokespeople for the White House and Nvidia didn’t immediately respond to requests for comment.  https://www.npr.org/2025/04/09/nx-s1-5356480/nvidia-china-ai-h20-chips-trump?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124   #🇨🇳 ChinA.I. 🤖🧠🦾🤖

The White House was expected to ban sales of the high-performance AI chip to China. Chinese companies had been stockpiling the chip but now the Trump administration is backing off.

Cyril

A group of likeminded people in Artificial Intelligence are talking about this.