Nvidia Reportedly Developing A New Version Of Its Flagship AI Chip For Chinese Market Amid US Export Restrictions (UPDATED)

Editor’s note: The article has been updated with Nvidia’s response.

Nvidia Corp. NVDA is reportedly in the process of creating a new AI chip, designed to comply with U.S. export controls, specifically for the Chinese market.

What Happened: According to anonymous sources, Jensen Huang’s Nvidia is teaming up with Inspur, a significant distribution partner in China, to launch and distribute the new chip, provisionally named “B20.” The chip is a part of Nvidia’s “Blackwell” series, launched in March, and is set to be mass-produced later this year, Reuters reported on Monday. The B200, a chip within the series, is said to be 30 times faster than its predecessor at certain tasks.

This development follows Washington’s decision to tighten its controls on semiconductor exports to China in 2023. Since then, Nvidia has created three chips specifically for the Chinese market. The new chip could enhance Nvidia’s efforts to combat competition from Chinese tech giant Huawei and Tencent-backed startup Enflame.

China contributed to roughly 17% of Nvidia’s revenue in the year ending January, a decrease from 26% two years prior, due to U.S. sanctions. Despite a slow start, Nvidia’s most advanced chip for China, the H20, is anticipated to sell over 1 million units this year, generating over $12 billion, as per research group SemiAnalysis.

It is widely expected that the U.S. will continue to apply pressure on semiconductor-related export controls, with initial plans to impose restrictions around the most advanced AI Models.

Nvidia declined to comment on this.

See Also: Days After Elon Musk Deemed University Of Tokyo’s Idea ‘Pointless,’ Scientists Develop Smiling Robot With Living Skin

Why It Matters: The development follows another report that revealed Google and Microsoft are providing Chinese companies access to Nvidia AI chips through data centers outside China, despite U.S. restrictions. This was seen as a workaround to the Biden administration’s restrictions aimed at preventing Chinese firms from utilizing U.S. technology for artificial intelligence, particularly advanced semiconductors.

In July, Nvidia was on track to sell $12 billion of artificial intelligence chips in China this year despite the U.S. export controls.

Back in May, the Chinese government had urged its tech giants to reduce their reliance on foreign-made chips, particularly those from Nvidia, and increase their purchase of domestic AI chips.

Price Action: As per Benzinga Pro, Nvidia closed at $117.93 on Friday.

Read Next:

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsGlobalTechGeneralAI ChipChinaConsumer TechJensen HuangNvidia ChipsPooja RajkumariStories That MatterUS Exports
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!