Nvidia has announced it will resume sales of its H20 chips in China. The H20 chip was designed to adhere to US export restrictions and is technologically inferior to Nvidia's other products. David Sacks, the White House's AI czar, emphasized that this move aims to limit Huawei's market dominance. He noted that while the chips are less capable, they can still allow Nvidia to capture a significant share of the Chinese market. Sacks believes that this approach is strategic, as overly restrictive export controls could backfire against US tech interests.
"There is a compelling argument here that you just don't want to hand Huawei the entire Chinese market when Nvidia is capable of competing for a big slice of it with a deprecated, less capable chip."
"The US government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon."
"We're not selling our latest greatest chips to China, but we can deprive Huawei of basically having this giant market share in China that they can then use to scale up and compete with us globally."
"Overly restrictive chip export controls would hurt rather than help US tech dominance."
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