NVIDIA, AMD to Launch New AI Chips in China Amid US Restrictions
▼ Summary
– NVIDIA and AMD will soon sell new AI-focused GPUs in China to comply with U.S. export restrictions, according to Digitimes.
– NVIDIA’s “B20” and AMD’s Radeon AI PRO R9700 are the new GPUs designed for AI workloads in China, with sales expected to start in July.
– NVIDIA is developing a budget AI chip for China priced at $6,500-$8,000, compared to its H20 GPUs, which cost $10,000-$12,000.
– NVIDIA reported a $4.5 billion Q1 charge due to licensing issues affecting H20 chip sales in China and missed $2.5 billion in potential shipments.
– The company predicts licensing restrictions will cause an $8 billion revenue loss in Q2.
Major chip manufacturers NVIDIA and AMD are preparing to launch specialized AI processors tailored for the Chinese market, adapting to recent U.S. export controls on advanced semiconductor technology. According to industry reports, these new products will offer modified performance capabilities to comply with regulatory requirements while addressing growing demand for artificial intelligence computing power in China.
Sources indicate NVIDIA’s upcoming “B20” GPU will feature reduced technical specifications compared to its international counterparts, while AMD’s Radeon AI PRO R9700 workstation GPU aims to serve professional AI development needs. Both companies are expected to begin distribution as early as July, marking a strategic shift in their approach to maintaining market presence under tightened trade regulations.
Recent financial disclosures reveal the significant impact of these restrictions on NVIDIA’s operations. The company reported a $4.5 billion charge in Q1 related to licensing hurdles affecting H20 GPU sales in China, with an additional $2.5 billion in potential shipments blocked during the same period. Projections suggest these challenges could lead to an $8 billion revenue shortfall in Q2, highlighting the complex balance between compliance and commercial interests.
Meanwhile, details have emerged about NVIDIA’s development of a more affordable Blackwell-based AI chip for Chinese buyers, with an estimated price range of $6,500-$8,000—considerably lower than the $10,000-$12,000 cost of its H20 models. This pricing strategy reflects efforts to remain competitive in a market where access to cutting-edge technology faces increasing limitations.
The moves underscore how global tech firms are navigating geopolitical tensions while striving to meet the needs of one of the world’s largest technology markets. Both companies continue adjusting their product roadmaps to align with evolving trade policies without sacrificing their positions in China’s rapidly expanding AI sector.
(Source: TechCrunch)
