NVIDIA and AMD to Launch New AI Chips in China Compliant with U.S. Export Restrictions

To comply with U.S. restrictions on exporting advanced semiconductor technology to China, NVIDIA and AMD are preparing to launch new GPU models specifically tailored for the Chinese market. According to a report by Taiwanese tech publication Digitimes, citing supply chain sources, NVIDIA is developing a pared-down AI GPU code-named "B20," while AMD is set to introduce a new Radeon AI PRO R9700 workstation GPU. Both companies are expected to start selling these AI chips in China from July. Reuters also reported earlier this week that NVIDIA is working on a budget AI chip based on its Blackwell architecture, which is anticipated to be priced between $6,500 and $8,000. This is notably lower than the current range for its H20 GPU, which sells for $10,000 to $12,000. The reduced pricing is a strategic move to remain competitive in the Chinese market while adhering to the export restrictions. These efforts come in the wake of significant financial impacts. On Wednesday, NVIDIA disclosed that it had absorbed a $4.5 billion charge in the first quarter due to licensing requirements related to the sale of its H20 AI chips in China. Additionally, the company could not ship an extra $2.5 billion worth of H20 chips during the same period. NVIDIA forecasts that these restrictions will cause an $8 billion revenue loss in the second quarter. The development and introduction of these new GPUs highlight the balancing act that major tech companies must perform to navigate the complex landscape of international trade regulations. While the U.S. aims to limit China's access to cutting-edge technology, these companies are finding innovative ways to continue serving one of the world's largest markets. This strategic shift not only helps them maintain a foothold in China but also underscores the broader implications of geopolitical tensions on the global tech industry.