BENGALURU (Aug 21): Nvidia on Thursday denied a report by The Information that it plans to begin shipping a language processing unit (LPU) tailored for Chinese customers by year end, saying it has no China-specific version of the product on its road map.

"The reporting in The Information on Nvidia's LPU is incorrect. We have no LPU sales in the China market today, and no China-specific LPU product in our road map," an Nvidia spokesperson said.

Reuters had reported in March that Nvidia was preparing a China-compatible version of AI chips, as it sought to compete in the fast-growing market for artificial intelligence (AI) inference.

Earlier on Thursday, The Information reported, citing two Nvidia employees, that the company planned to begin small-batch shipments of an artificial intelligence chip designed for Chinese customers by the end of the year and that several customers had already placed orders.

According to the report, the chip was a version of Nvidia's LPU, a processor developed using technology licensed from start-up Groq that works alongside graphics processing units to speed up AI chatbot responses.

The publication said the chip complied with US export-control rules and that Nvidia had modified software to allow the LPU to operate with processors available in China after its next-generation Vera Rubin AI system became unavailable to the market because of US restrictions.

Nvidia's China business has been in flux in recent months. Washington in May approved sales of the company's H200 AI chips to a limited group of Chinese firms, including Alibaba, Tencent and ByteDance, though deliveries only recently began. Nvidia has also been marketing its Vera CPU to Chinese customers.

Chief executive officer Jensen Huang had said in May that Nvidia had "largely conceded" China's AI chip market to Huawei Technologies, which has emerged as the company's main domestic rival.

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