Nvidia's China-Specific Blackwell Chip

Nvidia is set to launch a new, cheaper Blackwell AI chip for the Chinese market, aiming to navigate US export restrictions. Priced between $6,500 and $8,000, it's a significant drop from the restricted H20 model's $10,000-$12,000 range. Mass production is expected to commence in June. This new chip uses GDDR7 memory instead of high bandwidth memory and forgoes advanced packaging tech, aligning with US regulations limiting memory bandwidth to 1.7-1.8 terabytes per second, compared to the H20's 4 terabytes per second.

The move marks Nvidia's third attempt to tailor GPUs for China in response to export curbs. CEO Jensen Huang noted the older Hopper architecture in the H20 couldn't be modified further to meet regulations. China previously accounted for 13% of Nvidia's sales, but US restrictions have slashed its market share from 95% to 50%, resulting in a $5.5 billion inventory write-off and $15 billion in lost sales. The new chip is based on Nvidia's RTX Pro 6000D, a server-class graphics processor.

Nvidia is also reportedly developing another Blackwell-architecture chip for China, with production potentially starting in September. This comes as Chinese firms like Huawei are increasing domestic AI chip development, backed by government initiatives to reduce reliance on foreign suppliers. The US export restrictions, introduced in April 2025, require licenses for exporting H20 chips to China, impacting Nvidia's revenue and market strategy.