The Chinese artificial intelligence (AI) chip market has been subject to ongoing export restrictions imposed by the United States in October 2022, which prohibited the sale of certain U.S. products to China.
The U.S. initially blocked the export of the highest level of chips produced by companies like Nvidia and AMD. Under the initial October controls, the companies were still able to export other models to China, such as Nvidia’s A800 and H800.
One year later, on Oct. 17, 2023, the U.S. government announced an expansion of controls to “reinforce” the previous ones, meaning all chip models would be embargoed from the Chinese market.
One of Nvidia’s top gaming chips, the L40S chip, is also affected by the latest export restrictions, which were immediately effective on Oct. 24.
However, on Nov. 9, local Chinese media outlet STAR Market Daily reported that Nvidia has plans to release three new chips for China. The report cited people familiar with the matter and said the chips are called the HGX H20, L20 PCIe and L2 PCIe.
Nvidia reportedly could announce the new chips as early as Nov. 16. Cointelegraph has reached out to Nvidia for comment but hasn’t yet received a response.
According to a quarterly report from Nvidia earlier in 2023, China is one of its largest markets, along with Taiwan and the United States.
Additionally, Chinese companies have been turning to domestic companies to fulfill their needs for AI chips.
On Nov. 7, Reuters reported that the Chinese technology company Baidu had ordered AI chips from Huawei in August.
According to the report, Baidu ordered 1,600 of Huawei’s 910B Ascend AI chips for 200 servers. Huawei’s 910B chips are supposed to be an alternative to Nvidia’s A100.
The report said that by October, Huawei delivered more than 60% of Baidu’s chip order, which is roughly 1,000 chips and has a total value of approximately 450 million yuan ($61.83 million). The remaining chips are expected by the end of the year.
Baidu is one of China’s leading AI companies. In October, it released its Ernie 4.0 AI system, which it says has an overall performance “on par with ChatGPT.”
Over the summer, the Biden administration reportedly said it is even considering adding restrictions on China’s access to cloud computing services.
On Oct. 23, U.S. Undersecretary of Commerce for Industry and Security Alan Estevez reiterated that fear to reporters at an event in Tokyo, particularly highlighting concerns over usage for military purposes.
“Shy” Reform voters in Labour areas led to Nigel Farage’s party winning the Runcorn by-election by just six votes, Labour peer Harriet Harman said.
The Runcorn and Helsby seat, created in 2024, went to Reform UK’s Sarah Pochin who defeated Labour candidate Karen Shore by six votes.
Reform overturned a 34.8% majority gained by former Labour MP Mike Amesbury last year before he stood down earlier this year after he punched a constituent on a night out.
It is the closest by-election result since records began in 1945.
“So, there’s a real level of frustration and I’m sure there’ll be a post-mortem, but I think there’s a lot of talk about shy Reform voters in Labour areas.”
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In the local elections, running at the same time, the Conservatives lost control of all 18 councils it was contesting, with Reform taking eight of those.
Image: Harriet Harman on the Electoral Dysfunction podcast
Baroness Harman said Labour now has “got to get on with delivering on the health service” and pointed out the minimum wage increase and breakfast clubs are only just being rolled out.
But she said the government also needs “more of a story” instead of just telling people to “bear with us” while it fixes what the Conservatives did.
“It seems to be that Farage has got no delivery, as yet, and all the story, whereas the government is really getting on with delivery, but it hasn’t got a big enough story about what that fits,” she said.
Image: An installation represents a bus stop during Reform UK’s local elections campaign launch in Birmingham. Pic: Reuters
She added that “Blue Labour” MPs – a socially Conservative wing of the Labour Party – “will be emboldened to press for further action” on issues like immigration, which they want to see a tougher stance on.
“There’s been grumbling about the big salience of the concerns of the winter fuel payment, but I don’t see there being any change on that,” she said.
Baroness Harman said she does not think the by-election and local election results were “utterly predictable” and will not lead to any splits or instability within the party.
Kemi Badenoch has apologised to Tory councillors who lost their seats after Reform made massive gains at the Conservatives’ expense in Thursday’s local elections.
The Conservative leader said she knew it was “disappointing” and that she was “sincerely sorry”, but added: “We are going to win those seats back – that is my job now.”
The Tories lost overall control of all 18 councils they had been in charge of that were up for election. There were 23 councils in the race in total.
A particularly bad loss was Buckinghamshire, which has been under Tory control since 1973 when local government was reorganised. The Conservatives lost overall control by just one seat after losing 29 seats.
Reform, which has never run in local elections before, gained eight councils from the Tories, one that had no overall control previously and one from Labour – the only Labour council up for grabs in this election.
Image: Nigel Farage with the new Runcorn and Helsby MP Sarah Pochin. Pic: Reuters
The Lib Dems won Shropshire from the Tories, as well as Cambridgeshire and Oxfordshire – both of which had no overall control before.
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The Conservatives had one win, with Paul Bristow being voted in as Cambridgeshire and Peterborough mayor, previously held by Labour.
Reform’s first major win of the election was the Runcorn and Helsby by-election where Labour lost to Reform by six votes. It was triggered by ex-Labour MP Mike Amesbury resigning after his conviction for punching a constituent.
Sir Keir Starmer said he “gets” why his party suffered defeat there and the results show “we must deliver that change ever more quickly, we must go even further”.
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3:05
Tories suffer heavy defeats
Addressing the Conservatives’ abysmal results, Ms Badenoch said: “Other parties may be winning now, but we are going to show that we can deliver and that we are on course and recovering.
“But they [the public] are still not yet ready to trust us,” she added.
“We have a big job to do to rebuild trust with the public.
“That’s the job that the Conservative Party has given me, and I’m going to make sure that we get ourselves back to the place where we are seen as being a credible alternative to Labour.”
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4:47
Farage: ‘This is Reform-quake’
Ms Badenoch said Labour’s election results showed Sir Keir Starmer “is on course to be a one-term prime minister”.
However, when asked if she would still be leader at the next general election, Ms Badenoch dodged the question and said: “I’m not playing all these questions that the media loves to ask about my future.
“This is not about me.”
She insisted she was the right person to lead the Conservatives, as she was chosen by the party’s members.
“I told them it wouldn’t be easy, I told them it would require a renewal and rebuilding of our party,” she said.
“That doesn’t happen in six months. I’m trying to do something that no one has ever done before, which is take their party from such a historic defeat back into government in one term.”
Beth Rigby, Harriet Harman and Ruth Davidson assemble for an elections debrief.
Beth’s been following a very happy Nigel Farage after Reform gained an MP in Runcorn, took the Greater Lincolnshire mayoralty and seized control of several councils.
But, how does the party promising change in its very name prove itself with greater power and responsibility?
They also discuss how Sir Keir Starmer reacts to Labour’s losses (Harriet says he needs to deliver on what he’s promised).
And what Kemi Badenoch has to do after a terrible set of results for the Conservatives (Ruth reckons it’ll be worse for the 2026 set of elections).