Nvidia is preparing to release a lower-cost version of its cutting-edge AI chip for the Chinese market, responding to U.S. export restrictions that have limited the availability of its more powerful models. According to sources familiar with the matter, the new chip based on Nvidia’s latest Blackwell architecture is expected to enter mass production as early as June 2025.
The move comes as Nvidia adapts to U.S. export controls aimed at restricting the sale of high-performance AI chips to China, part of a broader tech rivalry between Washington and Beijing. In late 2023, the U.S. government introduced tighter restrictions on AI-related semiconductor exports, effectively limiting Nvidia’s ability to sell its H20 AI chips, which were among the most powerful models available in China.
Now, Nvidia appears to be pivoting with a tailored solution: a less powerful, more affordable AI chip that stays within the bounds of U.S. export regulations while maintaining a foothold in the Chinese market.
The upcoming chip, part of Nvidia’s Blackwell-generation GPU lineup, is expected to retail between $6,500 and $8,000, significantly cheaper than the $10,000 to $12,000 price range of the restricted H20 model.
While technical specifications have not been publicly disclosed, the chip is believed to offer reduced computing capabilities to comply with U.S. limits, but still powerful enough to meet the growing demand for AI development in China—particularly in areas like natural language processing, computer vision, and machine learning.
Despite export controls, China remains one of the largest AI markets in the world. For Nvidia, the challenge has been balancing compliance with U.S. law while not losing critical market share to domestic Chinese chipmakers like Huawei and Biren. The launch of a reconfigured, export-compliant Blackwell chip helps Nvidia maintain commercial presence while adhering to political constraints.
Industry analysts see the move as both strategic and necessary. With Blackwell architecture being Nvidia’s most advanced to date offering superior performance per watt and improved AI workload handling even a scaled-down version is likely to be in high demand.
This development is part of a larger trend where semiconductor firms must constantly adjust to shifting geopolitical and regulatory landscapes. For Nvidia, agility and innovation are key to maintaining global dominance in the AI chip market.
As the company gears up for production in June, all eyes will be on how Chinese companies respond—and whether the reduced capabilities of the new Blackwell chip will still give them enough power to stay competitive in the global AI race.
Nvidia’s decision to launch a cheaper, export-compliant AI chip for China reflects the complex intersection of technology, global trade policy, and innovation. While politics continue to shape the future of AI hardware distribution, one thing remains clear: Nvidia is determined not to be left behind in any market, even when the rules keep changing.