NVIDIA plans to the Shanghai Research Center in a new commitment to China

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NVIDIA seeks to build a research and development center in Shanghai that would help the world’s leading company for artificial intelligence treatments to maintain competition in China, as its sales declined due to the tightening of American export controls.

The CEO, Jensen Huang, discussed the plan with the mayor of Shanghai Gong Cheng when they met in the Chinese city last month, according to two people aware of the issue. NVIDIA rents a new office space in Shanghai to accommodate the current employees as well as possible expansion.

According to people who have knowledge of the plans, the Research and Development Center will research the specific demands of Chinese customers and the complex technical requirements needed to meet Washington’s restrictions.

Actual basic design and production will remain abroad, however, due to the legal sensitivity to the transfer of intellectual property to China. “We do not send any GPU designs to China to be modified to comply with export controls,” Nvidia said.

The Shanghai team will also work on global research and development projects, including checking chips designs, improving current products and focusing in the sector such as independent leadership, said people who have knowledge of the matter said.

Huang also wants to ensure access to the talent of higher artificial intelligence in China. NVIDIA is currently announcing its headquarters in Shanghai, including engineers to help “direct the development of deep learning devices and programs of the next generation”, and “developing and improving ASIC designs that compete on a global scale”.

The Shanghai government has shown preliminary support for such plans, while Nafidia One of the people said that pressure on the American administration to agree to it. Silicon Valley includes about 2000 employees in the Chinese city, most of them in sales and relevant support functions.

NVIDIA expands its research in China, as it seeks to maintain a leadership position in one of its largest foreign markets, as she fears the local competitors led by Huawei responsibility by providing an Ecological Ecological System of Amnesty International.

While China represented about 14 percent of NVIDIA’s revenues last year, about $ 17 billion, Huang estimated that it might be a $ 50 billion market within two years.

“We want to build American standards in the world,” Huang said last week at the Milkin Institute event. “If we leave a market completely, there is no doubt that another person will intervene. Huawei, for example, is very huge … they will intervene.”

The Trump administration issued a warning this week to American and foreign companies around the world Using artificial intelligence chips manufactured by Huawei It can lead to criminal sanctions for violating American export controls.

Huang Blind to Beijing To meet with the Chinese deputy who was imposed on April 17, days after the imposition of new restrictions on the export of the H20 chip in NVIDIA, a model that has already been redesigned to comply with the Biden era controls that limit sales to China.

Looking at the restrictions on its best-selling chips in China, NVIDIA offers L20 processors-low-end finish chips without high-range memory and lower computing devices-to Chinese clients as an alternative, according to people who have knowledge of the issue.

It is understood that the technology giants are reluctant to submit applications because processors cannot compete with Chinese competing performance.

“We are in an embarrassing position where we choose either the CUDA Software System, which means a decrease in operational cost, or the transformation of Chinese chips completely and we live through the pain of switching systems,” said one of the executives of a leading Chinese technical company.

Customers, led by Bytedance and Tencent, monitors geopolitical developments to assess whether NVIDIA can provide a sophisticated, redesigned segment to meet their needs. The people said that while Nafidia was exploring different options, there were no final plans due to the uncertainty.