Nvidia Offers Vera Processors to Chinese Clients Amid GPU Supply Blockade

Photo: Tom's Hardware
Quick answer
Nvidia starts accepting orders for Vera server CPUs for Chinese clients from August, circumventing the ban on H200 GPU shipments.
Nvidia has begun accepting orders for its Vera server processors from Chinese clients, offering an alternative to the blocked shipments of H200 GPUs. According to sources, the first batches could be shipped as early as August 2024. This move comes in response to tightened U.S. export restrictions, which have effectively reduced Nvidia’s share of the Chinese AI accelerator market to zero.
The Arm-based Vera processors were initially developed as part of the Vera Rubin superchip, unveiled at GTC in 2023. In March 2024, Nvidia separated them into a standalone product, and at Computex, the company announced the start of mass production. Nvidia claims Vera delivers 1.8 times higher performance on agent workloads compared to x86 processors.
Chinese cloud providers are already testing over 300 Vera-based servers, and a major market player is preparing to place an order. However, deployment will be limited to overseas data centers, as using U.S. processors in Chinese data centers could pose regulatory challenges. Export restrictions on CPUs are less stringent than those on GPUs, allowing Nvidia to bypass the bans.
Demand for server processors is growing amid the rise of agent AI, which requires significant computational power for data processing and code execution. Competitors like Intel and AMD are also reporting CPU shortages and extended delivery times, increasing interest in alternative solutions.
Common questions
- Why is Nvidia offering Vera processors instead of GPUs to Chinese clients?
- Shipments of H200 GPUs to China are blocked due to U.S. export restrictions and regulatory barriers from China. Vera processors, unlike GPUs, are not subject to such stringent restrictions.
- When are the first Vera processor shipments to China expected?
- The first shipments of Vera processors for Chinese clients may begin as early as August 2024. Orders are being accepted now.
- Which companies in China are interested in Vera processors?
- Chinese cloud providers are already testing over 300 Vera-based servers, and a major market player plans to place an order. Deployment will be limited to overseas data centers.
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