Nvidia (NVDA.O) is developing a version of its latest flagship AI chips tailored for the Chinese market, in alignment with current U.S. export regulations, according to three sources familiar with the matter. The tech giant unveiled its “Blackwell” chip series in March, which is expected to begin mass production later this year. These new processors integrate dual silicon squares, making the B200 model 30 times faster than its predecessor in certain tasks, such as processing responses from chatbots.
The upcoming chip, tentatively named the “B20,” will be launched and distributed in collaboration with Inspur, a key distributor partner in China. The sources requested anonymity as Nvidia has not yet publicly announced these plans. Nvidia declined to comment on the matter, and Inspur did not respond to requests for information.
Washington imposed stricter controls on semiconductor exports to China in 2023 to curb advancements in supercomputing that could benefit China’s military. In response, Nvidia has developed three chip variants specifically for the Chinese market.
This regulatory environment has spurred Chinese tech giants like Huawei (HWT.UL) and startups such as Tencent-backed (0700.HK) Enflame to make strides in the domestic advanced AI processor market. The introduction of Nvidia’s new chip version for China aims to counter these competitive pressures.
China represented about 17% of Nvidia’s revenue in the fiscal year ending January, down from 26% two years prior. Although Nvidia’s most advanced chip for China, the H20, had a sluggish start this year and was priced below a competing Huawei chip, sales are now accelerating, with projections estimating over 1 million H20 chips worth more than $12 billion to be sold in China this year, according to SemiAnalysis.
Expectations are high that the U.S. will continue to enforce stringent semiconductor export controls. The Biden administration is seeking further restrictions on chipmaking equipment from the Netherlands and Japan, and may implement safeguards around advanced AI models, such as those used in ChatGPT. Chip stocks globally fell last week following Bloomberg News reports that the administration is considering a foreign direct product rule, which would prevent the sale of products made with American technology.
