Nvidia to Offer Vera CPUs in China Amid GPU Sales Freeze
Nvidia is preparing to sell its Arm-based Vera server CPUs in China as early as August, according to industry sources. This move comes while shipments of its high-end AI GPUs to the region remain restricted due to US export controls. The CPU offering aims to maintain Nvidia's presence in the Chinese market, where GPU sales have been significantly impacted.
Key points
- Nvidia is reportedly informing Chinese clients that its Arm-based Vera server CPUs could be available for order with shipments starting in August.
- This development occurs while Nvidia's advanced H200 AI GPUs remain frozen from shipping to China due to US export restrictions.
- Nvidia's CEO previously stated the company's market share for AI GPUs in China had effectively dropped to zero.
- The Vera CPUs are subject to lighter US export restrictions compared to AI accelerators.
- Early testing of over 300 Vera servers by Chinese cloud companies has been reported, with at least one major provider planning an order.
- Initial deployments of Vera systems are expected to be limited to overseas data centers of Chinese cloud providers.
Nvidia is reportedly set to launch its Arm-based Vera server CPUs in the Chinese market as early as August, according to multiple industry sources cited by Reuters. This strategic move aims to provide an alternative to Chinese customers while shipments of Nvidia's powerful H200 AI GPUs are currently suspended due to US export control regulations.
Sources familiar with the matter indicate that Nvidia has begun encouraging Chinese clients to place orders for the Vera CPUs, with delivery anticipated from August. This timeline aligns with previous statements made by Nvidia suggesting that Vera systems would become available through system builders and cloud partners in the fall. The availability of CPUs during a global server CPU shortage could position Chinese buyers favorably in the allocation queue.
Nvidia's AI GPU sales in China have been significantly impacted by US restrictions, with CEO Jensen Huang previously commenting that the company's market share in the country had effectively fallen to zero. Server CPUs, however, face less stringent export controls than the high-performance accelerators crucial for AI development. Reports suggest that Chinese cloud companies are already testing more than 300 Vera servers, and at least one major provider is considering placing an order. Initial deployments are said to be restricted to the overseas data centers of these companies.
Sources
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