Nvidia Reportedly Launching New AI Chip for China Market, Priced Significantly Lower Than H20, Set for Volume Production as Early as June

Key Points

  • Nvidia (英伟达) is reportedly preparing to launch a new AI chip for the Chinese market based on its Blackwell architecture.
  • The new chip is expected to be priced significantly lower than the H20, likely between $6,500 and $8,000 USD.
  • Volume production for this chip could begin as early as June.
  • This marks Nvidia’s third attempt at creating a downgraded chip specifically for China to comply with US export restrictions.
  • The pivot to the Blackwell architecture is likely because the older Hopper architecture (used in H20) could no longer be modified to meet current US regulations.
Decorative Image
Nvidia’s China-Specific AI Chip Efforts
AttemptArchitectureStatus/Details
1stOlder (e.g., A100 based)Initial compliance efforts
2nd (H20 and variants)HopperBlocked by updated US regulations
3rd (New offering)BlackwellPlanned launch, lower price, volume production likely June

Heads up, tech world!
There’s fresh buzz that US chip giant Nvidia (英伟达 Yīngwěidá) is gearing up to launch a new Artificial Intelligence (人工智能 Réngōng Zhìnéng, AI) chip specifically for the Chinese market, and this could be a game-changer for Nvidia AI chip China strategy.

This new silicon is reportedly based on the cutting-edge Blackwell architecture.

The big news?
It’s expected to come with a price tag significantly lower than its predecessor, the H20 chip.

Volume production could kick off as early as June.

This intel comes via a May 25 report from Singapore’s 联合早报 (Liánhé Zǎobào) website, which cited news from Reuters (路透社 Lùtòushè).

Nvidia’s Blackwell-Powered AI Chip: What We Know About the New China Offering

So, what’s the deal with this new AI processor?

It’s built on Nvidia’s latest generation Blackwell architecture, which is a pretty big deal in itself.

But here’s the kicker for the Chinese market:

  • Expected Price Point: Between $6,500 and $8,000 USD.
  • This is a noticeably lower price compared to the H20 chip.

What does a lower price usually mean in the world of high-performance chips?

Typically, it points to:

  • Weaker chip specifications compared to its higher-priced siblings.
  • A more simplified manufacturing process.

This move aims to keep Nvidia competitive in China amidst ongoing geopolitical tensions and rising local competition.

Navigating US Export Controls: Nvidia’s Third Attempt at a China-Compliant AI Chip

This isn’t Nvidia’s first rodeo trying to tailor chips for China under US regulations.

The report highlights that this will be the third time Nvidia (英伟达 Yīngwěidá) has launched a downgraded chip specifically for the Chinese market.

Why the adjustments?

It’s all about complying with US regulatory requirements.

Recently, the US government put the brakes on Nvidia (英伟达 Yīngwěidá) selling its H20 chips to China.

The H20 chips are based on the older Hopper architecture.

This constant recalibration shows how critical the Chinese market is for Nvidia, even with complex export rules in play.

Key Reported Features of Nvidia’s New China AI Chip
  • Based on the latest Blackwell architecture
  • Expected Price: $6,500 – $8,000 USD
  • Significantly lower price than the H20
  • Volume Production Start: As early as June
  • Designed to comply with current US export restrictions

From Hopper to Blackwell: The Architectural Pivot for China

Sources familiar with the situation mentioned that Nvidia (英伟达 Yīngwěidá) had initially considered developing another downgraded version of the H20 chip for China.

However, that plan seems to have hit a wall.

Nvidia (英伟达 Yīngwěidá) CEO Jensen Huang (黄仁勋 Huáng Rénxūn) previously shed some light on this.

He stated that the Hopper architecture, which powers the H20, could no longer be modified to meet the current US export restrictions.

This limitation likely pushed Nvidia to pivot to its newer Blackwell architecture for this latest China-specific offering.

It’s a strategic move to continue serving a key market while adhering to stringent export controls, focusing on a new Nvidia AI chip China solution.

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