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Nvidia H20 Chip Shortage in China; Soaring Demand Drives Price Hikes

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Key Takeaways

  • H3C warns of potential Nvidia H20 chip shortages in China due to U.S. export controls.
  • Demand for H20 chips surges amid adoption by Tencent, Alibaba, ByteDance; supply uncertain.
  • OpenAI expects $12.7B revenue this year, $29.4B next, a significant increase.
  • SiCarrier announces its tools can assist China in producing advanced chips.
  • Microsoft reportedly pulling back on data center leases in the US and Europe.

Chip Supply Chain

H3C warns of Nvidia H20 chip shortage in China

On March 27, 2025, H3C, a major Chinese server manufacturer, cautioned clients about potential shortages of Nvidia's H20 AI chips due to U.S. export controls and high demand. The company cited supply chain uncertainties and geopolitical tensions, with current inventory nearly depleted and new shipments expected by mid-April, prioritizing distribution based on profit margins.

H20 chip demand surges amid supply uncertainties

On March 27, 2025, it was reported that demand for H20 chips has surged due to the adoption of DeepSeek's AI models by Chinese tech firms like Tencent, Alibaba, and ByteDance. H3C noted that supply plans beyond April 20 face uncertainties, and they will prioritize stable, long-term customers with higher profit margins. An industry source indicated that H20 processors are currently scarce, being sold at higher prices.

SiCarrier: Tools can assist China in advanced chip production

On March 27, 2025, SiCarrier announced that its tools can assist China in producing advanced chips, amid ongoing efforts to bolster domestic semiconductor capabilities.

Microsoft reportedly pulling back on data center leases

On March 27, 2025, analysts indicated that Microsoft is pulling back from more data center leases in the US and Europe, suggesting a potential shift in their infrastructure strategy.

SK Hynix sees accelerated orders due to US tariffs

On March 27, 2025, SK Hynix reported that some customers accelerated their chip orders in anticipation of new U.S. tariffs on semiconductors. This 'pull-in' effect and reduced customer inventory have created favorable market conditions, according to Lee Sang-rak.

AI Breakthroughs

OpenAI expects $12.7B revenue this year, $29.4B next

On March 26, 2025, Bloomberg reported that OpenAI expects to earn $12.7 billion in revenue this year, a significant increase from the $3.7 billion in annual revenue last year. They also anticipate $29.4 billion in revenue next year.

OpenAI's AI image generator sparks Ghibli-style trend, copyright concerns

On March 26, 2025, OpenAI's new AI image generator sparked a viral trend of Studio Ghibli-style images, raising copyright concerns. Legal experts highlighted the legal gray area surrounding style copyright.

Kim Jong Un touts AI suicide drones, early-warning aircraft

Reported on March 27, 2025, North Korean leader Kim Jong Un touted AI suicide drones and early-warning aircraft, showcasing advancements in the country's military technology.

Wyze's new 'No Big Deal' filter reduces nuisance alerts

On March 26, 2025, Wyze announced a new AI-powered ‘No Big Deal’ Filter for its security cameras. This filter aims to reduce notification fatigue by only sending high-priority alerts.

Extropic plans to unseat Nvidia, according to WIRED

A WIRED article discusses how Extropic plans to unseat Nvidia, suggesting a potential challenge to Nvidia's dominance in the AI chip market.

Federal workers grill Trump appointee on AI demos

WIRED reports on federal workers grilling a Trump appointee during an all-hands meeting regarding AI demos and answers, highlighting scrutiny over AI initiatives.

Security Breaches

Officials exposed sensitive info via Venmo, reports WIRED

WIRED reported that National Security Advisor Mike Waltz, White House Chief of Staff Susie Wiles, and other top officials exposed sensitive information via Venmo. The report was published after WIRED inquired about the issue.

Cyber Defense

Google's Titan security key expands to more countries

On March 26, 2025, Google’s Titan security key expanded to more countries, including Ireland, Portugal, and Singapore. The device helps users access their Google account without a password by connecting to a PC via USB or NFC.

EV Revolution

Foxconn plans EV event in Japan to attract manufacturers

On March 27, 2025, sources reported that Foxconn is planning an EV event in Japan to attract manufacturers, signaling its continued expansion in the electric vehicle sector.

Gadget Mania

Canon EOS R50 V: Improved video, launches April for $649.99

On March 26, 2025, Canon announced the redesigned entry-level EOS R50 with improved video capabilities. The EOS R50 V is set to launch in April 2025 for $649.99.

Nothing Ear (a) on sale at Amazon for $77.50

On March 26, 2025, The Verge reported that the already inexpensive Nothing Ear (a) are on sale at Amazon starting at $77.50, a new all-time low. Nothing’s entry-level earbuds deliver solid value for the price, combining decent active noise cancellation with enjoyable sound, multipoint Bluetooth pairing, Fast Pair (for Android), and a low-latency gaming mode.

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