U.S. chipmaker Nvidia plans to begin mass production in the second quarter of 2024 of an artificial intelligence (AI) chip it designed for China to comply with U.S. export rules, two people familiar with the matter said on Monday. The H20 chip is the most powerful of the three China-focused chips Nvidia developed to meet restrictions announced in October. It was originally scheduled for launch last November, but that plan was delayed, with sources telling Reuters at the time that the delay was due to issues server manufacturers were having with integrating the chip. One of the people said initial production volume will be limited, with Nvidia set to primarily fulfill orders for major customers. The H20, L20, and L2 include most of Nvidia's newest features for AI work, but with computing power cut back to comply with the new rules, according to SemiAnalysis' analysis of the chips' specifications.