Nvidia is set to launch a new line of lower-cost AI chips for the Chinese market, aiming to navigate U.S. export restrictions and counter rising competition from domestic players like Huawei. The upcoming chips, based on Nvidia’s Blackwell architecture, are expected to debut as early as June 2025, with another variant potentially arriving by September.
Nvidia’s Strategic Shift: Introducing Affordable AI Chips in China
Adapting to Export Controls
In response to U.S. export restrictions that banned its H20 model, Nvidia is developing new AI chips tailored for China. These chips, possibly named the 6000D or B40, will feature reduced capabilities to comply with U.S. regulations, such as using GDDR7 memory instead of high-bandwidth memory and omitting advanced CoWoS packaging.
Competitive Pricing
The new chips are expected to be priced between $6,500 and $8,000, significantly lower than the H20’s $10,000–$12,000 range. This pricing strategy aims to make Nvidia’s offerings more accessible in the Chinese market, where it faces stiff competition from local companies.
Market Dynamics
Nvidia’s market share in China has declined from 95% to 50% due to U.S. trade restrictions and increased competition from domestic firms like Huawei, which has been gaining ground with its Ascend 910B chip. Financial Times
