Nvidia is set to launch a new, lower-cost AI chip for the Chinese market, following recent U.S. export restrictions that banned its H20 model. The new GPU, based on Nvidia’s Blackwell architecture, is expected to be priced between $6,500 and $8,000, significantly cheaper than the $10,000–$12,000 H20, due to reduced specifications and simpler manufacturing. It will utilize RTX Pro 6000D hardware with GDDR7 memory rather than high-bandwidth memory and avoid Taiwan Semiconductor’s advanced CoWoS packaging. Reuters+1Reuters+1
This marks Nvidia’s third attempt to create compliant GPUs for the Chinese market, which accounted for 13% of its recent sales. The company initially considered a downgraded H20 but was unable to meet U.S. regulatory constraints. Another Blackwell-based chip is reportedly in development for launch by September. Reuters+1Reuters+1
Since 2022, Nvidia’s market share in China has fallen from 95% to 50%, largely because of growing competition from Huawei and increasing U.S. export restrictions. The H20 ban alone forced Nvidia to write off $5.5 billion in inventory and forfeit $15 billion in sales. New U.S. rules now limit GPU memory bandwidth to 1.7–1.8 TB/s, which the upcoming chip is expected to meet, using GDDR7 technology. Reuters+1Reuters+1
Nvidia’s CEO, Jensen Huang, has criticized the U.S. export controls, labeling them a failure and citing massive financial losses for U.S. companies, including Nvidia’s own declining market share in China from 95% to 50%. He praised the Trump administration’s proposed reversal of these curbs, saying the shift reflects a better understanding of global tech dynamics and the need for cooperation over restriction. Reuters+1Reuters+1
The new Blackwell-based chip is seen as a strategic move by Nvidia to regain its foothold in the Chinese market and compete with domestic alternatives like Huawei’s Ascend 910C. The launch is expected to commence mass production as early as June 2025. Reuters+3en.wikipedia.org+3Reuters+3Reuters+1Reuters+1
