It's no secret that the rise of China's AI industry has raised concerns in the United States because it poses a challenge to American interests. In order to limit China's development, the United States banned the export of Nvidia's H100 and A100 chips the year before last, and launched the H800 and A800, two castrated chips exclusively for the Chinese market. However, last year, the United States further tightened the embargo requirements, banning chips such as Nvidia's H80 and A800. Faced with this situation, Nvidia criticized the United States on the one hand and tried to lobby it to lift the ban, and on the other hand, it had to continue to adjust its products and develop castrated chips that meet the requirements of the ban. According to ** report, Nvidia has launched three GPU chips that meet the requirements of the US ban, namely HGXH20, GPUL20 and L2. However, the production of castrated chips not only reduces performance, but also further declines the performance of the already less powerful AI chips. According to **, the performance of the strongest H20 chip is only 20% of that of the original H100, which is equivalent to 80% of the performance of being castrated. In this case, many large technology companies have begun to look for domestic AI chips that can replace Nvidia chips, and Huawei's AI chips have become the hot object of many companies, especially Huawei's Ascend 910B chip. According to reports, orders for the Ascend 910B chip have exceeded 5,000 sets. Although the performance of the Ascend 910B is slightly lower than that of NVIDIA's A100 chip, this gap can be bridged by clustering, for example. In addition, Huawei's Ascend 910B chip has the best advantages over Nvidia's products, and it is a domestic brand, which is why many large companies have chosen to embrace Huawei and refuse to buy NVIDIA's castrated AI chips. What measures did Nvidia take in this situation? Their most direct way is, of course, to cut prices and compete directly with Huawei's Ascend 910B chips, perhaps to win back some customers, after all, Nvidia has the advantage of the CUDA ecosystem. According to recent reports, Nvidia has started pricing H20 chip distributors in China, with each H20 chip priced between $12,000 and $15,000, and some distributors have priced it at 110,000 yuan in China. Compared with the H100 chip, which was priced at more than 300,000 yuan, the price has been reduced by two-thirds. At the same time, this ** is not much different from the price of Huawei's AI chips. Obviously, Nvidia does feel the urgency, because in China, Nvidia has a 90% share of the AI chip market, with a market size of about $7 billion. If this market is lost, it will have a significant impact on Nvidia. What's more, once the AI chips of Huawei and other companies rise, Nvidia will completely lose China, the largest market, so it has to put down its body and suppress Huawei's AI chips through the ** war. So the next question is, will anyone buy Nvidia chips after the price reduction? Before, everyone said that Nvidia castrated performance, so it won't buy it, but now that it's lowered, will anyone still buy it?
As a substitute for Nvidia chips in the United States, Huawei's AI chips have received widespread attention and popularity. In particular, Huawei's Ascend 910B chipset is further enhanced by its high performance and outstanding performance. According to reports, orders for the Ascend 910B chip have exceeded 5,000 sets, which shows the high demand for it. Although the performance of the Ascend 910B is slightly lower than that of NVIDIA's A100 chip, this gap can be effectively made up through the application of clustering and other methods. Moreover, the Ascend 910B chip has a relatively favorable price compared to the NVIDIA chip, and it is a domestic chip, which makes many companies full of confidence and support. In today's fierce market competition, Huawei has successfully attracted the cooperation and procurement of many large technology companies by virtue of its own technical strength and product advantages, which is also a situation that NVIDIA did not expect. Huawei's AI chip brand image is increasingly recognized and praised by the market, and the continuous improvement of its technical strength has also made it a leader in the industry.
While Huawei's AI chips are being popular, Nvidia has to face the loss of customers and the loss of market share. In order to win back customers and stop the rise of Huawei chips, Nvidia decided to adopt a first-class strategy. By cutting prices to compete directly with Huawei's Ascend 910B chip, Nvidia hopes to regain market attention and recognition. According to the report, Nvidia has begun pricing H20 chip distributors in China, with each H20 chip between $12,000 and $15,000, while Chinese distributors have priced it at 110,000 yuan. Compared with the H100 chip, which was priced at more than 300,000 yuan, Nvidia has reduced the price by two-thirds. This price reduction measure is undoubtedly a major move for NVIDIA, because the ** and performance advantages of Huawei's AI chips have put huge pressure on NVIDIA. Through its price reduction strategy, Nvidia hopes to win back some of its customers and maintain its competitive advantage in China, the largest market. However, at the same time as the reduction, Nvidia has to bear more cost pressure, which is undoubtedly a challenge to the profitability of the enterprise. Therefore, Nvidia must develop a more comprehensive and effective competitive strategy as soon as possible, otherwise they may lose more market share.
After Nvidia launched the most preferential castrated version of the chip, it is worth paying attention to the market's reaction to this move. In the past, many customers were dissatisfied with the poor performance of Nvidia's castrated chips and were reluctant to buy them. However, with the implementation of the price reduction strategy, Nvidia is expected to regain some of the lost customers. After all, the decline of lower-performance chips** may become more attractive for some companies that still need AI chips. In addition, NVIDIA, as a company with a large customer base, their CUDA ecosystem is also a favorable factor. In order to avoid losing the Chinese market entirely, Nvidia must make concessions and do everything it can to salvage the status quo. However, in the face of the strong competitiveness of domestic manufacturers such as Huawei, NVIDIA's predicament is still severe. Huawei's AI chips not only have advantages in performance, but also become more competitive, and the rapid rise of the brand image of domestic chips has also had a positive impact on its market prospects. Despite Nvidia's price reduction strategy, the rise of domestic brands such as Huawei is unstoppable in China, the world's largest AI chip market. In this situation, NVIDIA needs to respond to challenges more efficiently and innovatively, looking for new market opportunities to maintain its competitiveness and profitability.
Although Nvidia is the dominant player in the global AI chip market, with the rise of AI chips from domestic companies such as Huawei, Nvidia has to face the dilemma of customer loss and market share reduction. In order to win back customers and stop the rise of Huawei chips, Nvidia decided to cut prices to compete and launched castrated chips to comply with the U.S. ban. However, the performance of castrated chips after the price reduction has declined severely, which makes the originally low-performance AI chips even less attractive. At the same time, Huawei's Ascend 910B chip has attracted a lot of attention due to its relatively low ** and excellent performance advantages. Although the performance of the Ascend 910B chip is slightly inferior to NVIDIA's A100 chip, this gap can be bridged through clustering and other means. In addition, as a domestic enterprise, Huawei's brand image and technical strength have also made it competitive in the market. Faced with strong competitors such as Huawei, Nvidia has had to take more competitive measures, such as price cuts and the introduction of castrated chips. Although the price reduction is expected to attract some customers, Nvidia still faces fierce market competition and pressure from domestic companies. As a result, NVIDIA needs to respond to challenges more efficiently and innovatively in order to maintain its competitive strength and market share.