Nvidia is reportedly preparing to launch a modified version of its H20 artificial intelligence (AI) chip for the Chinese market as early as July 2025. This move comes in response to increasingly stringent U.S. export regulations that have curtailed the sale of advanced semiconductor technology to China. According to a Reuters report citing three sources familiar with the matter, the U.S.-based chip giant has informed major Chinese clients, including top cloud service providers, about the upcoming release.
The H20 chip is part of Nvidia’s powerful Hopper GPU architecture, designed to accelerate machine learning and AI workloads. However, under the U.S. Department of Commerce’s latest rules, high-performance chips like the original H20 are restricted from being exported to China due to national security concerns. In response, Nvidia has developed a “downgraded” version of the chip, which reportedly complies with U.S. thresholds on processing speed and chip-to-chip interconnect bandwidth key metrics that determine whether an AI chip can be exported.
This isn’t Nvidia’s first attempt to circumvent export restrictions. In late 2022, it introduced the A800 and H800 chips as alternatives to its top-performing A100 and H100 models, specifically for Chinese customers. However, those variants were later caught in expanded restrictions introduced in 2023.
The modified H20 chip signals Nvidia’s ongoing commitment to maintaining its market share in China, which is one of the world’s largest markets for AI development. Despite rising geopolitical tensions, Chinese tech firms remain heavily reliant on Nvidia’s hardware to power their AI systems, particularly in sectors such as cloud computing, autonomous vehicles, and generative AI.
While the specifics of the new chip’s performance have not yet been disclosed, industry analysts suggest that even a limited version of the H20 could offer Chinese firms significant computing capabilities. However, questions remain about whether such compromises will be sustainable if U.S.-China tech tensions continue to escalate.
With the planned July release, Nvidia aims to strike a delicate balance complying with U.S. regulations while sustaining its lucrative presence in China’s booming AI sector.
