Nvidia may launch more affordable version of its most powerful GPUs for China
is preparing to release a new artificial intelligence (AI) chip for the Chinese market at a significantly lower price point than its restricted H20 model, a report has claimed. The new chip, part of Nvidia's Blackwell architecture lineup, is said to enter mass production by June.
Price of Nvidia's affordable AI chips for China
Citing sources familiar with the matter, news agency Reuters said that the graphics processing unit (GPU) is expected to cost between $6,500 and $8,000 -- below the $10,000 to $12,000 price of the H20 chip it replaces. The reduced price is said to be due to scaled-back specifications and simplified manufacturing requirements.
What is changing in Nvidia's affordable AI chips for China
Notably, the upcoming chip will reportedly be based on Nvidia's RTX Pro 6000D, using GDDR7 memory instead of the high-bandwidth memory (HBM) used in more advanced models. It will also not include Taiwan Semiconductor Manufacturing Co.'s CoWoS packaging technology.
Nvidia has not officially disclosed the specifications, price, or launch timeline of the chip.
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A company spokesperson said Nvidia is still evaluating its "limited" options for the Chinese market and awaits approval from US authorities.
'Until we settle on a new product design and receive approval from the US government, we are effectively foreclosed from China's $50 billion data center market,' the spokesperson was quoted as saying.
Why China is important market for Nvidia
The move is Nvidia's third attempt to develop a GPU tailored for China after US restrictions blocked earlier models from being exported. China accounted for 13% of Nvidia's sales in the last fiscal year.
Despite its reduced computing power, the new GPU is seen as a necessary step for Nvidia to maintain a presence in China.
Industry analysts expect Chinese firms to close the performance gap with downgraded Nvidia chips within one to two years. However, Nvidia maintains a key advantage through its CUDA software platform, which is widely used by developers to build AI applications.
Nvidia's market share in China has fallen from 95% in 2022 to about 50% currently, CEO Jensen Huang said last week. He warned that ongoing export controls could push more Chinese customers toward domestic alternatives like Huawei.
In addition to the new chip set for June, sources told the publication that Nvidia is also developing a second Blackwell-based GPU aimed at China, scheduled for production in September.
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