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  • 2 months ago
Nvidia has halted production of its H20 AI chip for the Chinese market after Beijing told companies not to buy the product due to security concerns, according to TipRanks. The H20 was designed to comply with U.S. export rules, with sales previously approved by the Trump administration under a deal requiring 15% of revenue to go to Washington. Chinese firms rushed to place orders, but Beijing raised questions about risks such as potential remote access, which Nvidia denied. The company is now focusing on modified chips based on its Blackwell architecture that could meet U.S. requirements while still offering stronger performance than domestic alternatives. The company reports earnings Wednesday, August 27th, as it navigates escalating U.S.-China technology tensions.
Transcript
00:00It's Benzinga bringing Wall Street to Main Street.
00:02NVIDIA has halted the production of its H2O AI chip for the Chinese market after Beijing told
00:07companies not to buy the product due to security concerns, according to tip ranks. The H2O was
00:12designed to comply with U.S. export rules, with sales previously approved by the Trump administration
00:16under a deal requiring 15% of the revenue to go to Washington. Chinese firms rushed to place
00:21orders, but Beijing raised questions about risks such as potential remote access, which NVIDIA
00:25deny. The company is now focusing on modified chips based on its Blackwell architecture
00:30that can meet U.S. requirements while still offering stronger performance than domestic
00:34alternatives. The company reports earnings Wednesday, August 27th, as it navigates escalating
00:39U.S.-China technology tensions. For all things money, visit Benzinga.com.
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