Nvidia is working on a version of its new flagship AI chips for the China market that complies with current U.S. export controls, according to three sources familiar with the matter.
In March, Nvidia unveiled its “Blackwell” chip series, which is expected to be mass-produced later this year. The new processors feature two squares of silicon, each the size of the company’s previous offerings. Within this series, the B200 chip is 30 times faster than its predecessor in tasks like serving up answers from chatbots.
Nvidia will collaborate with Inspur, one of its major distribution partners in China, to launch and distribute the chip tentatively named the “B20,” according to two sources. Nvidia has not yet made a public announcement, and a spokesperson declined to comment. Inspur did not respond to requests for comment.
Washington tightened its controls on exports of advanced semiconductors to China in 2023, aiming to prevent advancements in supercomputing that could benefit China’s military. Since then, Nvidia has developed three chips tailored specifically for the Chinese market. The tighter export controls have enabled Chinese tech giant Huawei and startups like Tencent-backed Enflame to make some progress in the domestic market for advanced AI processors.
A version of a chip from Nvidia’s Blackwell series for the Chinese market would support the U.S. firm’s efforts to stay competitive.
| Year | Nvidia’s Revenue from China | Percentage of Total Revenue |
|---|---|---|
| 2021 | 26% | 26% |
| 2022 | 17% | 17% |
Despite initial weak sales when deliveries began this year, Nvidia’s H20 chip, priced below a rival chip from Huawei, is now growing rapidly in sales. Nvidia is projected to sell over 1 million H20 chips in China this year, worth over $12 billion, according to research group SemiAnalysis.
The U.S. is expected to continue its pressure on semiconductor-related export controls. There are plans for further restrictions on chipmaking equipment to China, involving the Netherlands and Japan. The Biden administration also has preliminary plans to impose guardrails around the most advanced AI models, the core software of artificial intelligence systems like ChatGPT. Chip stocks worldwide tumbled last week after reports that the U.S. was considering a measure to stop a product from being sold if it was made using American technology.
Featured Image courtesy of DALL-E by ChatGPT
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