Nvidia Launches China-Focused GeForce RTX 4090 D Amid US Export Restrictions

Summary

  • The GeForce RTX 4090 D, developed by Nvidia, is the first China-focused chip created in accordance with U.S. export control regulations.
  • The product follows new export rules implemented by the Biden administration in October, which affected two of Nvidia’s previously developed AI chips, the A800 and H800.
  • Nvidia, which holds over 90% of China’s $7 billion AI chip market, launched the RTX 4090 D after a top gaming chip, the RTX 4090, was blocked for sale.
  • Despite U.S. restrictions, opportunities arise for domestic firms such as Huawei Technologies to penetrate the AI chip market.
  • The RTX 4090 D is 5% slower in gaming and creation compared to its predecessor and is priced at 12,999 yuan ($1,842).

Nvidia’s Response to U.S. Export Controls

The GeForce RTX 4090 D is Nvidia’s latest product release, developed in full compliance with U.S. government export controls, a spokesperson confirmed. This was done following extensive engagement with the U.S. government during the design process.

Export Rule Impact on AI Chips

The GeForce RTX 4090 D is Nvidia’s first China-centric chip following the Biden Administration’s October implementation of new export rules. The rules led to the halt in sales of Nvidia’s two AI chips, the A800 and H800, created under the previous export regulations. Also affected was a top gaming chip, the RTX 4090.

SemiAnalysis’ Predictions

In early November, industry newsletter SemiAnalysis predicted that Nvidia could announce three new AI chips, targeting the Chinese market, by November 16 in response to October’s stringent export regulations.

China’s AI Chip Market

Nvidia has a dominant market share in China’s $7 billion AI chip industry, commanding over 90%. Despite the U.S restrictions, this situation is likely to provide opportunities for domestic companies like Huawei Technologies to advance in the industry.

Comparing RTX 4090 and RTX 4090 D

The Chinese-focused RTX 4090 D performs 5% slower in gaming and creation compared to the banned RTX 4090, as per the spokesperson. Priced at 12,999 yuan ($1,842), the RTX 4090 D costs 350 yuan ($50) more than the second most sophisticated chip in the same series available to Chinese consumers.

The pricing and the production of this new AI chip could have implications in the forex market, potentially affecting the valuation of the yuan and the general stability of the technology industry. Consequently, investors and traders may want to keep a close eye on Nvidia’s performance in the stock market.

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