Nvidia moves to comply with US export rules
The US says Nvidia’s H20 chip is still too powerful for export, prompting the firm to redesign it instead of losing key clients.
Nvidia is planning to redesign its AI chips to comply with tightened US export restrictions, aiming to retain its foothold in China instead of pulling back.
According to a report by The Information, the chipmaker has already informed major Chinese clients, such as Alibaba, ByteDance, and Tencent, about its revised strategy. The discussions reportedly occurred during CEO Jensen Huang’s visit to Beijing in mid-April.
The visit came just after Washington expanded its curbs on high-performance AI chip exports to China, specifically targeting Nvidia’s H20 chip.
Originally developed to meet earlier US rules, the H20 has now also been deemed too powerful for export under the new regulations. The US government says the move is aimed at preventing China’s military from accessing cutting-edge AI.
Nvidia previously warned that the latest restrictions could cost it up to $5.5 billion in lost revenue. Instead of backing away, the company is now preparing redesigned chips to stay within legal bounds while continuing to serve Chinese tech firms.
Customers have been told that prototype chips could be ready by June.
In addition, Nvidia is developing a tailored version of its next-generation AI chip, Blackwell, specifically for China. These efforts underline Nvidia’s attempt to balance regulatory compliance with its commercial interests in one of the world’s largest AI markets.
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