Threat to the development of artificial intelligence: China expects shortage of American processors
Kyiv • UNN
Chinese server manufacturer H3C has warned of a possible shortage of Nvidia H20 chips, which could delay the development of artificial intelligence in the country. Priority will be given to customers with a higher profit margin.
In China, H3C, one of the largest server manufacturers, announced in its appeal to customers a possible shortage of the Nvidia H20 chip, the most advanced artificial intelligence processor legally available within the country under US export controls. This is reported by UNN with reference to Reuters.
Details
The potential supply crisis may create obstacles for China's artificial intelligence ambitions at a time when its technology firms are actively expanding their investments in artificial intelligence.
The international H20 supply chain is facing significant uncertainty
In its statement, H3C also noted that it will allocate incoming H20 chips based on the "profit first" principle, prioritizing stable, long-term customers with a higher rate of return on their orders.
H20 processors are currently in short supply in the Chinese market, according to a source familiar with the situation who distributes artificial intelligence servers, including those using H20 chips.
We were told that the chips would be available, but when it came time to buy them, we were told that they had already been sold at higher prices
In January, Reuters reported that US officials were considering restricting sales of H20 chips to China.
H3C is a major OEM partner for AI chips from Nvidia in China, along with other companies such as Inspur, Lenovo, and Huawei's x86-server xFusion.
The main Nvidia chip that is legally allowed to be sold in China, the H20, was released after the latest round of US export restrictions took effect in October 2023.
Earlier, the US banned the export of Nvidia's most advanced chips to China in 2022. This was due to concerns that their competitor could use advanced technologies to build up its military potential. According to analysts, in 2024, Nvidia shipped about one million H20 units, bringing the company revenue of over $12 billion.
Addition
Chinese fintech giant Ant Group, backed by Alibaba founder Jack Ma, has used Chinese-made semiconductors to develop methods for training artificial intelligence models that could allow for cost reductions of 20%.
Earlier this year, DeepSeek briefly crashed Nvidia's shares due to speculation that its models require far fewer chips.
