In a bid to compete with Chinese tech giant Huawei, NVIDIA Corp (NASDAQ:NVDA) has reportedly slashed the prices of its most advanced AI chips in China.
What Happened: The price of Nvidia’s H20 chip, designed specifically for the Chinese market, has been reduced due to an oversupply, Reuters reported on Friday, citing sources familiar with the matter.
The H20 chip is now being sold at a discount of over 10% compared to Huawei’s Ascend 910B, the most powerful AI chip from a Chinese company.
The price cut highlights the challenges faced by Nvidia’s China business, including U.S. sanctions on AI chip exports and increased competition. These factors have cast a shadow over the company’s future in a market that contributed 17% of its revenue for fiscal 2024.
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