STORY: Nvidia’s RTX6000D chip is its newest artificial intelligence offering tailored for the Chinese market.
But according to two people with knowledge of procurement discussions, it’s only seeing lukewarm demand.
With some major tech firms opting not to place orders.
The sources added that the chip is seen as expensive for what it does.
And that testing of samples showed its performance lags the RTX5090 – a chip banned by the U.S. for use in China.
That chip is still readily available though through grey market channels.
Separate sources earlier this month said Chinese tech giants, including Alibaba, Tencent and ByteDance, are also waiting for clarity on whether orders for Nvidia’s H20 chip will be processed.
The U.S. firm regained permission to sell the H20 in July but shipments have yet to restart.
Nvidia began shipping the RTX6000D this week, according to one of the sources.
China’s access to cutting-edge AI chips is one of the biggest flashpoints in the U.S.-Sino trade tensions.
On one hand, the U.S. has retreated from its previous position of more severe export restrictions.
But Beijing has become increasingly keen for Chinese firms to switch to domestic chips.
On Monday (September 15), Beijing accused Nvidia of violating China’s anti-monopoly law, casting more uncertainty on its business in the world’s second-biggest economy.
The move came as delegations from both sides are meeting in Madrid this week to discuss a trade agreement.
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