NVIDIA and AMD Prepare to Launch New AI Chips in China Amidst US Export Restrictions
In response to U.S. regulations restricting the export of advanced semiconductor technology to China, NVIDIA and AMD are gearing up to sell new GPUs tailored for AI workloads in the Chinese market. According to a report by Taiwanese tech publication Digitimes, both companies are preparing to introduce modified versions of their AI chips to comply with the restrictions.
NVIDIA is reportedly planning to offer a streamlined AI GPU, internally codenamed “B20.” Meanwhile, AMD aims to address the AI workload demands with its new Radeon AI PRO R9700 workstation GPU, Digitimes notes. The expected launch timeframe for these AI chips in China is July.
Earlier this week, Reuters reported that NVIDIA is also developing a new, more affordable AI chip based on its Blackwell architecture specifically for the Chinese market. This chip is projected to be priced between $6,500 and $8,000, significantly lower than the $10,000 to $12,000 price tag of its H20 GPUs.
NVIDIA stated on Wednesday that licensing requirements resulted in a $4.5 billion charge in Q1, affecting its ability to sell the H20 AI chip in China. Furthermore, the company anticipates an $8 billion revenue hit in Q2 due to these ongoing restrictions, as it was unable to ship an additional $2.5 billion of H20 chips in the last quarter.
These strategic moves by NVIDIA and AMD highlight the complexities of navigating international trade regulations while continuing to serve the burgeoning Chinese AI market. The introduction of these new chips represents a calculated effort to balance compliance with U.S. export laws and maintain a presence in a critical global market.
