The Huawei Ascend 910B features Total Processing Performance (TPP), a metric developed by US Govt. to track GPU performance measuring TeraFLOPS times bit-length of over 5,000, while the NVIDIA H20 comes to 2,368 TPP, which is half of the Huawei accelerator. That is the performance on paper, where SemiAnalysis notes that the real-world performance is actually ahead for the H20 GPU due to better memory configuration of the GPU, including higher HBM3 memory bandwidth. All of this proves to be a better alternative than Ascend 910B accelerator, accounting for an estimate of over one million GPUs shipped this year in China. With an average price of $12,000 per NVIDIA H20 GPU, China’s $12 billion revenue will undoubtedly help raise NVIDIA’s 2024 profits even further.
NVIDIA to Sell Over One Million H20 GPUs to China, Taking Home $12 Billion
When NVIDIA started preparing the H20 GPU for China, the company anticipated great demand from sanction-obeying GPUs. However, we now know precisely what the company makes from its Chinese venture: an astonishing $12 billion in take-home revenue. Due to the massive demand for NVIDIA GPUs, Chinese AI research labs are acquiring as many as they can get their hands on. According to a report from Financial Times, citing SemiAnalysis as its source, NVIDIA will sell over one million H20 GPUs in China. This number far outweighs the number of home-grown Huawei Ascend 910B accelerators that the Chinese companies plan to source, with numbers being “only” 550,000 Ascend 910B chips. While we don’t know if Chinese semiconductor makers like SMIC are capable of producing more chips or if the demand isn’t as high, we know why NVIDIA H20 chips are the primary target.