Nvidia is set to launch a new artificial intelligence graphics processing unit (GPU) for the Chinese market as early as June. This GPU offers a pared-down alternative to its previously restricted H20 chip, Reuters reported, citing multiple sources close to the matter.
Built on Nvidia’s latest Blackwell architecture, the new GPU will carry a price tag between $6,500 and $8,000. This price represents a significant reduction compared to the H20’s $10,000 to $12,000 range.
The lower cost reflects several compromises. Nvidia will deliver weaker specifications, simpler packaging, and replace the advanced high-bandwidth memory found in premium AI processors with conventional GDDR7 memory. Additionally, the chip will resemble the RTX Pro 6000D model but will not incorporate Taiwan Semiconductor Manufacturing Company’s (TSMC) Chip-on-Wafer-on-Substrate (CoWoS) technology, which underpins Nvidia’s high-performance chips. TSMC declined to comment on the development.
Navigating Tightening U.S. Export Controls
This new GPU marks Nvidia’s third attempt to produce a China-compliant AI chip following the U.S. government’s tightening of export restrictions designed to limit China’s access to advanced technology.
After Washington effectively banned the H20 chip in April, Nvidia initially explored ways to downgrade it. However, CEO Jensen Huang confirmed last week that further modifications to the Hopper architecture powering the H20 are no longer possible under current U.S. regulations.
An Nvidia spokesperson told Reuters, “Until we finalize a new product design and obtain U.S. government approval, we remain effectively excluded from China’s $50 billion data center market.” The spokesperson added that Nvidia continues to assess its limited options carefully.
Uncertainty Around Chip’s Name and Specs
Although Nvidia has yet to confirm the final name of the new GPU, Chinese brokerage GF Securities suggested it might be branded as the 6000D or B40. However, the brokerage did not provide sources or detailed information. Likewise, the exact specifications of the chip remain undisclosed, and Reuters could not verify the final configuration.
Impact on Nvidia’s China Market Share
Nvidia’s market share in China has sharply declined since 2022, when U.S. export restrictions began targeting its products. CEO Huang revealed this week in Taipei that Nvidia’s share has dropped from 95% before 2022 to approximately 50% currently.
Huang identified Huawei as Nvidia’s main rival in China, citing the company’s Ascend 910B chip. He further warned that if U.S. export curbs persist, an increasing number of Chinese customers will switch to Huawei’s offerings.
Financial Fallout from Export Ban
The ban on the H20 chip forced Nvidia to write off $5.5 billion in inventory. Moreover, Huang revealed on the Stratechery podcast that the company forfeited an additional $15 billion in potential sales.
The latest export restrictions introduced further technical constraints, including tighter limits on GPU memory bandwidth—a crucial factor that determines how fast data transfers between the chip core and memory.
In summary, Nvidia faces growing challenges to maintain its foothold in China’s lucrative AI chip market. The upcoming launch of a more affordable, downgraded GPU reflects the company’s strategic efforts to adapt to regulatory headwinds while continuing to compete against rising domestic rivals.
