Nvidia Set to Launch Lower-Priced AI Chip for China Amid Export Curbs

Nvidia is preparing to introduce a new artificial intelligence (AI) chipset for the Chinese market at a significantly reduced price compared to its recently restricted H20 model, Reuters said citing sources familiar with the matter. Mass production could begin as early as June.

The upcoming graphics processing unit will be based on Nvidia’s latest Blackwell architecture, and is expected to be priced between $6,500 and $8,000—lower than the H20’s price of $10,000-$12,000. The cost reduction reflects scaled-back specifications and simpler production processes. It will be based on Nvidia's RTX Pro 6000D, a server-class graphics processor and will use conventional GDDR7 memory instead of the more advanced high-bandwidth memory (HBM), the report said. The new model will not use Taiwan Semiconductor Manufacturing Co’s Chip-on-Wafer-on-Substrate (CoWoS) packaging.

The company is still reviewing its limited options, the report cited an Nvidia spokesperson, as saying. “Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50bn data centre market.”

China continues to be an important market for Nvidia as it accounted for 13% of the company’s total revenue in the last financial year. Nvidia’s share of the Chinese market has dropped from 95% before 2022 to about 50% currently, the report stated. Its main competitor, Huawei, has gained ground.

This is Nvidia’s third attempt to design a compliant chip for China, following repeated rounds of US export restrictions aimed at curbing China’s tech advancement. After the H20 was effectively banned in April, Nvidia initially considered developing a downgraded version of the H20 for China, but that plan did not work out.

Nvidia is also developing another Blackwell-architecture-based chip for China that is set to begin production in September, the report said citing sources.