Nvidia works on China-version of AI chips
Nvidia Fights US Export Restrictions to China, Developing Special Processor with Partner Inspur
Nvidia is reportedly working on a special version of its current AI chip for the Chinese market due to US export restrictions. This processor, developed in collaboration with Chinese distributor Inspur, is expected to be released in Q2 2025, according to multiple sources familiar with the matter. Nvidia declined to comment on the issue.
In the spring, Nvidia introduced its flagship model B200 "Blackwell," the mass production of which is set to begin in the coming months. According to reports, the B200 operates 30 times faster than its predecessor. With the pared-down version "B20," Nvidia aims to keep Chinese competition at bay, as they are trying to take market shares from Nvidia. Huawei and Tencent are among the companies vying for customers.
Nvidia has developed three AI processors for the Chinese market in recent years, which initially complied with US export restrictions. However, these restrictions have been tightened over time, and some of these chips can no longer be exported to the People's Republic. Experts believe the US government will expand these restrictions further.
As a result of the embargo, the share of China revenues in Nvidia's total revenue dropped from 26 percent two years ago to 17 percent in the previous fiscal year. Experts at research firm SemiAnalysis predict that the current flagship model for the Chinese market, the "H20," will see over a million units sold in the current year, with an estimated revenue of over $12 billion from these processors.
Amidst the tightened US export restrictions, Nvidia is strategically partnering with Inspur to release a new AI chip in China, aiming to mitigate the impact on their economy. Despite facing competition from Chinese companies like Huawei and Tencent, Nvidia's new processor, expected in Q2 2025, could potentialy bring in over $12 billion in revenue from the Chinese market.
