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H3C, a leading server manufacturer in China, has raised alarms about potential shortages of Nvidia's H20 AI chip. This chip is the most advanced AI processor available in China under U.S. export controls, and its scarcity could hinder China's AI development efforts. The company noted that its current inventory is nearly depleted, and uncertainties in the international supply chain are contributing to this situation.
The demand for H20 chips has surged as major Chinese tech firms like Tencent, Alibaba, and ByteDance ramp up their orders. H3C plans to distribute the limited incoming chips based on a profit-first principle, prioritizing long-term customers. The geopolitical tensions affecting global trade and raw material policies further complicate the supply situation, with new shipments expected only by mid-April.
• H3C warns of Nvidia H20 chip shortages impacting AI ambitions.
• Demand for H20 chips surges as major tech firms increase orders.
AI chips are specialized processors designed to accelerate artificial intelligence applications, such as the H20 chip from Nvidia.
The supply chain refers to the network involved in producing and delivering AI chips, which is currently facing significant uncertainties.
Geopolitical tension affects the availability of AI chips by disrupting trade and supply chains, impacting companies like H3C and Nvidia.
H3C is a major server manufacturer in China, focusing on AI chip distribution amid supply challenges.
Nvidia produces the H20 AI chip, which is crucial for China's AI development and subject to export controls.
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