China urges tech firms to shift from Nvidia AI chips due to US sanctions, promoting local AI chip alternatives.

China is urging its tech companies to prioritize domestically produced AI chips over those from Nvidia, following U.S. sanctions on China's semiconductor industry. While there is no formal ban on Nvidia's H20 GPUs, local companies are encouraged to adopt alternatives like those from Huawei. This shift could lead to Nvidia potentially losing $12 billion in sales in China in 2024, as the country invests heavily in local AI chip development.

October 07, 2024
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