To adhere to U.S. export restrictions on advanced semiconductor technology to China, NVIDIA and AMD are preparing to launch new GPUs tailored for AI applications in the Chinese market, according to Taiwanese tech outlet Digitimes, which cited supply chain insiders.
NVIDIA and AMD Prepare AI GPUs Tailored for China’s Market
NVIDIA is reportedly preparing to launch a scaled-down version of its AI GPU, known by the code name “B20,” specifically designed to meet the export restrictions and cater to the Chinese market’s demand for AI processing power. This streamlined GPU delivers solid AI performance while complying with U.S. regulations, enabling NVIDIA to maintain its presence in China’s growing AI sector despite export limitations.
Meanwhile, AMD targets the same market by introducing its new Radeon AI PRO R9700 workstation GPU, designed to efficiently handle AI workloads in professional environments. This GPU aims to provide robust performance for AI applications, particularly for Chinese enterprises and developers who require high-powered yet accessible AI computing solutions.
NVIDIA and AMD Navigate Regulations to Tap Growing Market
Both companies plan to start selling these specialized AI chips in China as early as July, signaling a strategic move to adapt their product lines to regulatory constraints while continuing to capitalize on the expanding AI technology market in China. This approach not only ensures compliance but also enables NVIDIA and AMD to support the AI ecosystem within China by offering products designed specifically for its unique regulatory and commercial environment.
Additionally, Reuters recently reported that NVIDIA is developing a lower-cost AI chip based on its Blackwell architecture for the Chinese market, with an anticipated price range of $6,500 to $8,000—significantly cheaper than its H20 GPUs, which currently sell for $10,000 to $12,000.
On Wednesday, NVIDIA reported a $4.5 billion charge in the first quarter due to licensing restrictions that hindered its ability to sell the H20 AI chip to Chinese firms. Additionally, the company was unable to ship another $2.5 billion worth of H20 chips during the quarter because of these limitations. Looking ahead, NVIDIA projected that these licensing requirements could reduce its second-quarter revenue by $8 billion.
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