Nvidia Launches New China AI Chip

Nvidia is set to launch a new artificial intelligence chipset for the China market, priced significantly lower than its previously restricted H20 model, with mass production expected to begin as early as June. This new GPU, part of Nvidia's Blackwell-architecture AI processors, will cost between $6,500 and $8,000, reflecting weaker specifications and simpler manufacturing requirements, including the use of conventional GDDR7 memory and no TSMC's advanced CoWoS packaging technology. This move is a direct response to U.S. export restrictions aimed at curbing China's technological development, which have already caused Nvidia's market share in China to plummet from 95% to 50% and resulted in $5.5 billion in inventory write-offs and $15 billion in lost sales. Nvidia CEO Jensen Huang has indicated that the older Hopper architecture can no longer be modified under current U.S. export rules. The new chip aims to help Nvidia regain its footing against competitors like Huawei, which produces the Ascend 910B chip. Nvidia is also reportedly developing another Blackwell-architecture chip for China, with production slated for September.