Nvidia CEO Jensen Huang is planning a trip to Beijing amidst US export restrictions, aiming to strengthen ties and explore opportunities in China's AI market. Huang's visit follows the introduction of stricter licensing requirements for exporting advanced AI chips to China, potentially impacting Nvidia's revenue.
Nvidia is developing new AI chips tailored for the Chinese market to comply with US regulations. These chips, based on the Blackwell architecture, will have reduced specifications and simpler manufacturing requirements, resulting in lower prices. The new chips may use GDDR7 memory and avoid advanced packaging technologies to meet export restrictions. Production is expected to begin as early as June, with a potential launch in September.
Despite challenges posed by export controls, Nvidia recognises China as a crucial market and seeks to maintain its presence. The company faces increasing competition from domestic players like Huawei, leading to a decline in market share. Huang's visit underscores Nvidia's commitment to China and its efforts to navigate the complex regulatory landscape.
