Nvidia Unveils Cheaper AI Chip for Chinese Market Amid Export Restrictions
Nvidia has launched a new artificial intelligence chip tailored for the Chinese market, in a strategic move to comply with ongoing U.S. export restrictions.
The new chip is both cheaper and less powerful than its predecessor, the H20, marking a significant shift in Nvidia’s China strategy.
A Downgraded Successor to the H20
The newly introduced chip is priced between $6,500 and $8,000—considerably lower than the H20’s $10,000 to $12,000 range.
This price drop reflects deliberate design changes intended to keep the chip within the performance limits set by U.S. regulators.
It will be based on Nvidia’s RTX Pro 6000D, a server-class graphics processor, and will use conventional GDDR7 memory instead of more advanced high bandwidth memory (HBM)
The U.S. government currently restricts the export of high-performance semiconductors to China due to concerns over their potential use in military and advanced AI applications.
Design Changes to Meet Compliance
To adhere to U.S.government restrictions,Nvidia has downgraded the chip by replacing the high-speed components found in the H20.
Notably, it uses slower GDDR7 memory and has a simplified manufacturing design.
These adjustments significantly reduce the chip’s data bandwidth to 1.7 terabytes per second—roughly half of the H20’s capacity.
Market Share Pressures from Chinese Competitors
Once the dominant player in China’s AI chip market with a 95% share, Nvidia’s grip has weakened, now holding just 50% amid tightening export controls and rising competition.
Chinese tech giants like Huawei are rapidly developing domestic alternatives, making it essential for Nvidia to stay present with legally compliant offerings.
Looking Ahead
Although Nvidia has not yet publicly named the new chip or released full specifications, further details are expected soon.
The company’s move reinforces its commitment to the Chinese market while navigating increasingly complex geopolitical and regulatory landscapes.
By offering stripped-down but accessible products, Nvidia hopes to retain a foothold in China’s rapidly evolving AI sector—even as its dominance is increasingly challenged.
News Gist
Nvidia has launched a cheaper, less powerful AI chip for China, priced at $6,500–$8,000, to comply with U.S. export restrictions.
Based on RTX Pro 6000D with slower GDDR7 memory, the chip offers half the H20’s bandwidth.
Facing rising competition from Huawei, Nvidia aims to maintain market presence amid regulatory pressure.
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