NVIDIA To Generate A Whopping $12 Billion From China Despite Restrictions As H20 AI GPU Sees Massive Demand

NVIDIA is expected to witness a huge upturn in the AI revenue generated through China as it sees massive demand for its "stripped-down" AI GPUs.

If we look back at the period when the Biden administration imposed harsh sanctions on NVIDIA's AI products in China, it was estimated that these regulations would end Team Green's monopoly over the domestic markets, but apparently, NVIDIA has managed to turn the tides in their favor. In a previous report, we explained how the world's largest computing firm had witnessed massive demand for its China-compliant H20 AI GPUs from local tech giants such as Alibaba and Tencent, and a new report from Financial Times explains the potential revenue NVIDIA is set to generate, just from China alone.

NVIDIA's H20 AI accelerators have seen tremendous demand from Chinese customers, mainly since the only domestic competitor, which is Huawei, is unable to fulfill the demand coming from mainland China. Financial Times says, citing SemiAnalysis, that Huawei is set to sell a whopping 550,000 of the Ascend 910B AI chips by the end of 2024, which is a large amount considering that the Ascend 910B aren't capable for high-end workloads, rather low-to-mid inferencing tasks. Also, NVIDIA is all set to bag in $12 billion from Chinese markets this year alone, and we'll break down the figures for you next.

It is rumored that NVIDIA's H20 AI GPUs retail for $10,000-$13,000 in the Chinese markets. If we calculate the units Team Green expects to sell this year, it comes to around 900,000 units, almost double what Huawei plans to offload. Now, this shows that Team Green still has the energy to continue in China, and given that Huawei puts itself in a position where it can't fulfill large-scale orders, NVIDIA would certainly have an advantage here.

Not to mention the dominance of NVIDIA's CUDA software stack here. Most of the firm's clients have an arsenal of the H100s, which are known to show disruptive performance when coupled with CUDA. Hence, this puts NVIDIA over Huawei. It will be interesting to see how the year pans out for Chinese AI markets, but by the looks of it, Team Green has a stronghold for now.