Nvidia is preparing to launch a new artificial intelligence chip for China at a significantly reduced price compared to its recently restricted H20 model, according to three sources familiar with the matter.
The new GPU, expected to enter mass production as early as June, will be based on Nvidia’s Blackwell architecture and is projected to be priced between $6,500 and $8,000. This marks a notable reduction from the $10,000–$12,000 range previously commanded by the H20, which U.S. export restrictions recently barred from sale in China.
“The lower price reflects its weaker specifications and simpler manufacturing requirements,” one of the sources said.
The GPU is based on Nvidia’s RTX Pro 6000D server-class chip and will feature conventional GDDR7 memory, rather than the more advanced high-bandwidth memory used in earlier models. It will also forgo Taiwan Semiconductor Manufacturing Co’s advanced CoWoS packaging technology, the sources added.
The product’s specifications, pricing, and production schedule have not been previously reported. Nvidia declined to confirm details but acknowledged the limited scope of its current options.
“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,” an Nvidia spokesperson said.
China accounted for 13% of Nvidia’s sales in its most recent financial year. The country remains a key market for the company, despite increasing pressure from U.S. export controls aimed at curbing Beijing’s access to cutting-edge technology.
This marks the third time Nvidia has had to redesign a product for the Chinese market in response to tightening U.S. restrictions. CEO Jensen Huang recently noted that the company could no longer modify its older Hopper architecture to meet compliance thresholds, effectively ending any future updates to the H20 line.
Nvidia’s dominance in China has declined significantly, with Huang stating that market share has dropped from 95% in 2022 to about 50% today. Domestic competitors such as Huawei, which produces the Ascend 910B chip, have increasingly filled the gap.
“If the export controls continue, more and more Chinese customers will buy Huawei chips,” Huang warned earlier this week.
The H20 ban has already had a financial impact. Nvidia wrote off $5.5 billion in inventory and forfeited up to $15 billion in potential sales, Huang told the Stratechery podcast.
U.S. export restrictions now limit GPU memory bandwidth to around 1.7 to 1.8 terabytes per second, compared to 4 terabytes per second in the H20. According to Chinese brokerage GF Securities, the new chip is expected to reach just under the regulatory cap using GDDR7 technology.
The product’s final name remains unconfirmed. GF Securities speculated it could be called the 6000D or B40, but did not cite sources.
Sources also said Nvidia is developing another China-specific Blackwell chip that may begin production as early as September, though further details remain unavailable.
Source: Reuters