Nvidia Set to Release Affordable Blackwell AI Chip for China Amid U.S. Export Restrictions

Nvidia is set to introduce a new artificial intelligence chipset designed for the Chinese market. This chip will come at a significantly lower price than the recently restricted H20 model, which previously sold for between $10,000 and $12,000. Instead, this new GPU is expected to be priced between $6,500 and $8,000. It will be based on Nvidia’s RTX Pro 6000D, using standard GDDR7 memory rather than the more advanced options.

This move reflects Nvidia’s strategy to adapt to U.S. restrictions while still tapping into China’s massive market, which accounted for 13% of its sales last financial year. Under the current scenario, the new chipset is crucial because it represents a shift in Nvidia’s ability to access the $50 billion data center market in China.

Chief Executive Jensen Huang noted that due to export limitations, the company cannot make further modifications to the older Hopper architecture, which the H20 uses. Initially, Nvidia considered a downgraded version of the H20 for China, but that plan fell through.

Historically, Nvidia dominated the Chinese GPU market with a staggering 95% share before 2022. However, recent export curbs have cut that down to about 50%. Their primary competitor now is Huawei, which produces its own chips, like the Ascend 910B. Huang has warned that if U.S. restrictions remain, more Chinese customers will likely turn to Huawei, increasing competition significantly.

The new export regulations also impose limits on GPU memory bandwidth—a key factor for AI performance. Investment bank Jefferies estimates that these limits range between 1.7-1.8 terabytes per second, far less than the H20’s capabilities of 4 terabytes per second. The new Nvidia GPU is expected to operate close to those limits, putting pressure on the company’s position in the market.

As technology evolves and geopolitical tensions alter the landscape, Nvidia’s ability to adapt will be critical for its future success. The company’s response to these challenges could reshape the industry, not just in China but globally. As AI continues to grow, how companies navigate these export restrictions will define the future of tech.

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