Nvidia has secured an order for 300,000 high-end computer chips from the Taiwan Semiconductor Manufacturing Company (TSMC) due to rising demand from China. This deal specifically involves the advanced H20 AI-targeted chipsets, produced in Taiwan’s top factories, coming after Trump lifted a ban that restricted Nvidia’s exports to China because of security issues.
The launch of DeepSeek, an AI model developed in China, has sparked what some term a “cold war” in the realm of artificial intelligence. This model has shown potential to compete with ChatGPT, having been created with limited resources. Just three months after the Trump administration’s restrictions on prominent U.S. suppliers selling high-tier silicon to China, which were justified by national security issues, the White House suddenly reversed its decision, allowing Nvidia to again sell high-end AI chips to China.
The founder and CEO of Nvidia, Jensen Huang, confirmed that the government assured him of resumed licenses for selling H20s in China. He emphasized that general-purpose, open-source research models are crucial for fostering AI innovation and should function well within the U.S. technology framework, thereby promoting global preference for American technology.
As a result of this shift, demand for Nvidia chips in China has significantly increased, leading the U.S. company to bolster its stock with a new order of 300,000 H20 chipsets. The return of Nvidia chips to the Chinese market is likely to benefit the country’s rapidly evolving AI industry, but concerns linger that the U.S. might fall behind in the AI competition, as voiced by OpenAI’s CEO, Sam Altman.
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