Due to the ban on high-end data center NVIDIA GPUs, Chinese startups have begun using GeForce RTX 4090 as NVIDIA's alternative isn't cost-effective.
The AI demand keeps increasing but as the Chinese market suffers from the ban on the supply of NVIDIA's top AI chips, many are forced for alternatives. It is reported that many startups in China are opting for NVIDIA's flagship gaming GPU the GeForce RTX 4090 instead of H20.
Since US sanctions on China have banned NVIDIA from selling the top AI GPUs like A100 and H100 in the country, several companies looked for alternatives. Even though NVIDIA did offer the H20 AI GPU, which started its mass production in Q2 2024, the GPU did not attract the Chinese market as thought.
The H20 is a cut-down H100 variant offering 296 SXM TF16 FLOPS of theoretical performance compared to the 1979 SXM TF16 FLOPS of the H100. However, not only is the H20 significantly nerfed in performance, but it does not provide any advantages in the power-efficiency department. Unlike the RTX 4090, the H20 is far more expensive for the performance it brings to the table.
This is why a lot of small companies have started utilizing the RTX 4090, which also has great availability despite the gaming graphics card being banned in the region. It is mentioned that despite the ban, startups are easily able to get several GeForce RTX 4090 GPUs for their needs. Even NVIDIA's GeForce RTX 4090D, a China-exclusive variant, has better value than the H20 AI Accelerators. These GPUs are also being equipped with double the memory to sustain large language models.
Currently, the NVIDIA H20 Accelerators sit at around 1.3M RMB with its main demand in well-established companies like
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