Nvidia is set to introduce a more affordable artificial intelligence (AI) chipset specifically for the Chinese market, following recent US export restrictions on its high-end AI processors. The new GPU, based on Nvidia’s latest Blackwell architecture, aims to maintain the company’s strong presence in China, a critical market that accounted for 13% of Nvidia’s sales in the past financial year.
According to sources familiar with Nvidia’s plans, the company intends to begin mass production of the new AI chip as early as June. This move comes as a direct response to US-imposed export curbs that have limited the sale of Nvidia’s recently launched H20 model to China. The H20, priced between $10,000 and $12,000, was designed to serve advanced AI workloads but now faces restrictions, prompting Nvidia to develop a cheaper alternative.
The upcoming Blackwell-based GPU will reportedly be priced between $6,500 and $8,000, making it significantly more accessible to Chinese customers while still delivering high-performance AI capabilities. This price point is expected to help Nvidia sustain its competitive edge in China, a market essential to its global growth strategy despite increasing geopolitical challenges.
China remains a lucrative market for Nvidia, contributing a substantial share of the company’s revenues. As the US tightens controls on advanced technology exports, Nvidia’s decision to release a tailored chip for China highlights the complex balancing act technology companies face amid geopolitical tensions. By offering a lower-cost AI processor, Nvidia can continue to cater to Chinese enterprises investing heavily in AI development without violating US export regulations.
The Blackwell series represents Nvidia’s latest innovation in AI processing technology, promising improved efficiency and performance. While details about the technical specifications of the China-specific chip remain limited, the new GPU is expected to support a wide range of AI applications, from data centers to autonomous systems.
This strategic launch underscores Nvidia’s commitment to adapting its product lineup to diverse global markets while navigating the evolving landscape of international trade restrictions. The move is likely to reinforce Nvidia’s market position in China and maintain its role as a leading supplier of AI hardware worldwide.
