Nvidia to launch slower version of its gaming chip in China to comply with U.S. export controls

Technology
Friday, December 29th, 2023 8:28 pm EDT

Key Points

  • Nvidia’s Compliance with U.S. Export Restrictions: Nvidia, a major U.S. chipmaking company, is set to release a modified version of its gaming processor, the Nvidia RTX 4090D, in China. The adjustment involves reducing the performance of the chip, specifically with 11% fewer CUDA cores, to adhere to U.S. export restrictions. These modifications aim to align with Washington’s regulations that limit China’s access to advanced chips from American firms.
  • Focus on AI and Export Restrictions: The export restrictions imposed by the U.S. primarily target chips that enable AI applications. While Nvidia’s RTX 4090D is a gaming-focused GPU, it is affected by these restrictions as gaming processors often have potential uses in artificial intelligence. This move reflects the broader challenges faced by tech companies dealing with export controls and the complex intersection between gaming processors and AI applications.
  • Nvidia’s Engagement with U.S. Authorities and Market Performance: Nvidia emphasizes its compliance efforts, stating that the RTX 4090D has been designed to fully comply with U.S. government export controls. The company claims to have extensively engaged with U.S. government officials during the product’s development. Despite these challenges, Nvidia’s market performance in 2023 has been robust, with shares surging more than threefold year-to-date. This success is attributed to heightened demand for AI, partly fueled by the popularity of OpenAI’s ChatGPT chatbot.

Nvidia, the U.S. chipmaking giant, is preparing to release a modified version of its gaming processor, the Nvidia RTX 4090D, in China to comply with U.S. export restrictions. The adjusted model, scheduled for launch in January, will have 11% fewer CUDA (Compute Unified Device Architecture) cores compared to versions sold outside China. The CUDA architecture serves as the GPU equivalent to CPU cores. Nvidia, though not immediately available for comment to CNBC, stated to Reuters that the new chip has been “designed to fully comply with U.S. government export controls.” The company claims extensive engagement with U.S. authorities during the product’s development. The move is a response to Washington’s export restrictions on advanced chips, primarily affecting those used in AI applications. The Nvidia RTX 4090 was listed among the banned U.S.-made chips. Despite these challenges, Nvidia’s shares have experienced a significant surge in 2023, more than tripling in value year-to-date, driven by heightened demand for AI, partly fueled by the popularity of OpenAI’s ChatGPT chatbot.

For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/29/nvidia-brings-slower-gaming-chip-version-to-china-to-bypass-us-rules.html