NVIDIA developing cheaper AI chip for China as U.S. export curbs bite

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NVIDIA is reportedly developing a cheaper AI chip for China after tighter U.S. export restrictions blocked sales of the H20. The new chip will use the Blackwell architecture but skips advanced features like HBM and CoWoS packaging.

The new NVIDIA AI chip for China will be much cheaper than the H20

This upcoming NVIDIA cheap AI chip for China is expected to cost between $6,500 and $8,000, sources told Reuters. That’s well below the $10,000 to $12,000 price tag of the now-banned H20, which triggered a major write-off.

“We are effectively foreclosed from China’s $50 billion data center market,” NVIDIA said about its limited options. The chip will reportedly use GDDR7 memory and a server-class RTX Pro 6000D design, avoiding export-restricted specs. NVIDIA may launch as soon as June, possibly named the 6000D or B40, depending on final plans.

GF Securities expects it to deliver around 1.7 terabytes per second bandwidth, staying within current U.S. limits. Despite weaker performance, the new chip helps NVIDIA compete with Huawei’s Ascend 910B in China’s fast-growing AI sector.

“Huawei could match downgraded chips in one to two years,” said Nori Chiou, a semiconductor expert at White Oak Capital. Chiou added that NVIDIA still holds an edge through CUDA, its software platform powering AI models and developer tools.

NVIDIA’s CEO is concerned about Huawei taking the lead in the AI race

Last month, CEO Jensen Huang warned that continued restrictions would push more Chinese customers to adopt domestic alternatives like Huawei. That’s not all; another NVIDIA chip based on Blackwell may begin production by September, though specs haven’t yet been confirmed.