Nvidia is preparing to launch a more affordable artificial intelligence (AI) chip tailored specifically for the Chinese market, aiming for a release by June 2025. This new model is a strategic response to U.S. export restrictions that limited Nvidia's ability to sell its high-end H20 GPUs in China.
According to sources cited by Reuters, the new GPU, part of Nvidia's Blackwell architecture series, will be priced between $6,500 and $8,000 – notably lower than the $10,000 to $12,000 range of the previously intended H20 model designed for China. The reduction in price is attributed to scaled-down specifications and simplified manufacturing processes.
The upcoming chip reportedly draws from Nvidia's RTX Pro 6000D design and will feature GDDR7 memory instead of the more advanced high-bandwidth memory (HBM) found in higher-end models. Additionally, it will forgo Taiwan Semiconductor Manufacturing Co.'s CoWoS packaging technology, a choice that reflects adjustments made to comply with export limitations.
Nvidia has yet to officially confirm the chip's specifications, pricing, or launch timeline. A company spokesperson noted that Nvidia continues to explore limited options for the Chinese market pending approval from U.S. governmental authorities. "Until we finalize a new product design and receive government approval, we remain effectively unable to access China’s $50 billion data center market," the spokesperson stated.
China is a significant market for Nvidia, representing approximately 13% of its sales in the previous fiscal year. Despite the lower performance tier of the upcoming GPU, industry experts consider this adaptation essential for Nvidia to sustain its presence amid intensifying competition from domestic Chinese technology firms, such as Huawei. Analysts predict that Chinese manufacturers could narrow the performance gap within one to two years but acknowledge Nvidia's continuing advantage, largely due to its widely utilized CUDA software platform for AI development.
Nvidia CEO Jensen Huang recently disclosed a decline in the company’s market share in China from 95% in 2022 to nearly 50% today, attributing this drop to ongoing export controls that drive customers toward domestic alternatives. In addition to the mid-year release, Nvidia is reportedly working on a second Blackwell-based GPU for China, expected to enter production by September.
