Nvidia Set to Launch Cheaper AI Chip for China Amid Export Limits

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Nvidia Set to Launch Cheaper AI Chip for China Amid Export Limits

Nvidia is preparing to launch a new artificial intelligence chip tailored for the Chinese market, priced significantly lower than its restricted H20 model.

According to information, shared by Reuters, the upcoming GPU will be based on the company’s latest Blackwell architecture and could hit mass production as early as June.

Affordable Alternative to H20

The new chip is expected to cost between $6,500 and $8,000—markedly less than the H20, which was priced in the $10,000 to $12,000 range. The reduced price reflects simpler design elements and downgraded specifications that make it easier to produce. Unlike the H20, this processor will rely on traditional GDDR7 memory instead of high-bandwidth memory (HBM) and won’t incorporate Taiwan Semiconductor Manufacturing Co’s advanced CoWoS packaging technology.

Geared Toward China’s Market Demands

The GPU, reportedly based on Nvidia’s RTX Pro 6000D, is aimed at retaining a foothold in China’s $50 billion data center market amid ongoing U.S. export restrictions. Nvidia’s move comes as Washington continues to tighten controls on advanced chip exports to China, curbing access to high-performance AI technologies.

Strategic Design Shift

An Nvidia spokesperson acknowledged the company is assessing limited options due to the current regulatory landscape. “Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market,” the spokesperson said.

The chipmaker’s response underlines the growing tension between U.S. trade policy and global tech demand, as Nvidia works to adapt product offerings without violating export regulations while preserving its position in a critical market.

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Kosta Gushterov

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Source: https://coindoo.com/nvidia-set-to-launch-cheaper-ai-chip-for-china-amid-export-limits/