The Nvidia CEO states that they are working hard with the US authorities to ensure that AI chips in the future for the Chinese market adhere to export regulations.
CEO Jensen Huang stated on Wednesday that Nvidia (NVDA.O.) is collaborating closely with the US government to make sure future chips for the Chinese market comply with export restrictions.
The $7 billion AI chip market in China is dominated by the California-based chip designer, but analysts predict that new U.S. restrictions on chip exports would give Chinese competitors a chance to gain market share.
According to reports last month, Nvidia informed Chinese clients that the release of a new AI chip with a focus on China will be postponed until the first quarter of 2019.
Huang refused to comment on the Reuters report.
At a conference in Singapore, Huang stated, “Nvidia has been working very closely with the U.S. government to create products that comply with its regulations.”
“Our plan now is to continue to work with the government to come up with a new set of products that comply with the new regulations that have certain limits.”
He said that Nvidia is still in the process of consulting the market and that Huawei (HWT.UL) was a “formidable” rival.
In light of the new U.S. regulations, Nvidia issued a warning on its November results call, predicting a sharp decline in fourth-quarter sales in China.
Huang stated that although China had historically contributed 20% of Nvidia’s revenue, it was difficult to forecast how much this would change in light of the recent export restrictions from the United States.
He added that Nvidia was in discussions with Singapore over possible major investments and how the city-state may assist in the development of its own extensive language model, Sealion.
An effort worth S$70 million ($52 million) was unveiled on Monday by Singapore’s Infocomm Media Development Authority (IMDA) to create Southeast Asia’s first major language model.
Huang mentioned Singapore’s thriving AI industry and its significance as a major hub for data for other Asian markets.
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