Nvidia unveils cheaper AI chip for China

Nvidia is preparing to launch a lower-cost AI chip for China that complies with US export restrictions, with mass production expected to begin as early as June.

The upcoming GPU will be based on the latest Blackwell architecture but will carry reduced specifications compared to the recently restricted H20 model. It is expected to sell for $6,500 to $8,000, significantly cheaper than the $10,000–$12,000 H20, reflecting its simpler design and less advanced components.

Sources say the new chip, likely named either the 6000D or B40, will use GDDR7 memory instead of high-bandwidth memory and will avoid Taiwan Semiconductor Manufacturing Co’s CoWoS packaging technology.

Nvidia had initially planned to downgrade the H20, but tighter US rules made that unviable. Instead of relying on its older Hopper architecture, the company is shifting to Blackwell for future developments in China.

Nvidia has been forced to adapt repeatedly due to tightening US export restrictions aimed at slowing China’s technological progress. Its market share in China has dropped from 95% before 2022 to around 50% today, as competitors like Huawei gain ground with chips like the Ascend 910B.

CEO Jensen Huang noted that continuing restrictions could further drive Chinese firms towards domestic alternatives, cutting Nvidia off from more of the $50 billion data centre market.

Huang also revealed that US curbs have forced Nvidia to write off $5.5 billion in inventory and abandon $15 billion in potential sales. New limits now target GPU memory bandwidth, a key factor for AI performance, capping it at around 1.8 terabytes per second.

The upcoming chip is expected to remain just within this limit, allowing Nvidia to retain a foothold in China instead of exiting the market entirely.

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