00:00Shares of NVIDIA dropped nearly 6 percent Monday morning after sources told Reuters
00:06that rival Huawei will begin mass shipments of its advanced AI chips to Chinese customers.
00:13Two people familiar with the matter told Reuters the shipments could begin as early as next
00:17month and said some shipments have already been made.
00:21Chinese companies have been scrambling to find a domestic replacement for NVIDIA's
00:26H20 chip, which the Silicon Valley giant had until recently been able to sell freely to
00:32the Chinese market.
00:34The Trump administration, seeking to limit China's technological development, told NVIDIA
00:39this month that sales of its H20 chip would require an export license.
00:45As a result, one tech policy consultant told Reuters that Huawei's 910C chip will now become
00:52the hardware of choice for Chinese AI developers.
00:56Huawei declined to comment on what it called speculation about shipment plans for the 910C
01:02and its capabilities.
01:04NVIDIA's most advanced AI chips, like its flagship B200, have been banned altogether by the Trump
01:11administration from being sold to China.
01:14This has allowed Huawei and Chinese tech startups to go after what has primarily been a market
01:20dominated by NVIDIA.
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