Us media: Nvidia launched a "downgrade" chip in China, but Chinese customers are not interested

"Nvidia's new dilemma in China: Customers don't want its degraded chips." On January 7, local time, the US Wall Street Journal reported that the US technology giant Nvidia wanted to sell its lower performance AI chips to Chinese buyers in response to the export restrictions of the Biden administration, but Chinese customers were not interested in the latest status quo. Business Insider reported a similar story.

Business Insider says the GeForce RTX 4090 D will be available this month, but Nvidia has already encountered some resistance. "The U.S. tech company may have found some leeway, but it faces a bigger problem: Chinese cloud companies - some of which are big customers of Nvidia around the world - aren't so keen to buy its low-performance AI chips." The Wall Street Journal reported.

According to Business Insider, Alibaba, Tencent, Baidu and other Chinese companies have indicated that they plan to reduce their orders this year because Nvidia does not offer its "most powerful chip." The report said that in terms of performance, China's domestic chips and Nvidia's "compliance version" of the chip is not far behind, which means that these Chinese companies may start to buy local chips. In addition, Chinese companies are also concerned that the United States may further increase export restrictions.

Business Insider mentioned that Nvidia CEO Jen-Hsun Huang has said that the US export control measures are like "tying our hands behind our back." China has been an important market for Nvidia, accounting for 20 percent of the company's revenue, he said.

At the regular press conference of the Ministry of Foreign Affairs of China on January 8, a reporter asked that the United States has continuously tightened its chip export control measures to China and increased its suppression of Chinese semiconductor companies. What is your comment?

 The NVIDIA RTX 4090 chip is positioned as a consumer-grade graphics card, mainly aimed at "hardcore" computer gamers. Affected by US export control measures, this chip was forced to be removed from the Chinese market, and the US side also coerced some countries to suppress relevant Chinese enterprises, which is more unrelated to security and is a typical act of economic coercion.

 The actions of the US have seriously affected the stability of the international production and supply chain, poisoned the atmosphere of international cooperation, and promoted division and confrontation. This self-serving approach is bound to shoot itself in the foot.