NVIDIA Launches 'China-Compliant' H20 AI GPU to Compete with Huawei

Despite lower performance, the new GPU offers superior interconnect speeds and is priced competitively, triggering a rise in NVIDIA's stock.

NVIDIA has started taking orders for its new 'China-compliant' H20 AI GPU, priced between $12,000 and $15,000, competing directly with Huawei's 910B AI accelerator.
The H20 AI GPU is a response to U.S. restrictions on high-end chip exports, designed to comply with U.S. export policies and maintain NVIDIA's presence in the Chinese market.
The H20, while less powerful than NVIDIA's flagship H100 and the previously banned H800, offers superior interconnect speeds, making it competitive for systems requiring extensive chip communication.
Despite the lower performance, NVIDIA's stock is trading up amid the news of the H20's pre-orders.
Chinese cloud companies, including Alibaba, which source nearly 80% of high-end AI chips from NVIDIA, could trim orders by 50%-60% within five years.