Nvidia to Launch China-Compatible Version of Blackwell AI Chip
Nvidia is reportedly developing a China-compatible version of its flagship Blackwell AI chip. The move is a response to tighter US export controls on cutting-edge semiconductors to China. Nvidia will collaborate with Inspur for the launch and distribution of the chip, tentatively named the "B20."
According to four sources familiar with the matter, the company aims to ensure compatibility with current US export controls.
Nvidia's CEO, Jensen Huang, unveiled the Blackwell series in March, which is set to enter mass production later this year. The new graphics processing units (GPUs) are a significant upgrade, combining two squares of silicon, doubling the size of the company's previous offering. Within the series, the B200 chip is reported to be 30 times faster than its predecessor in certain tasks, such as generating responses from chatbots.
To facilitate the launch and distribution of the China-compatible chip, Nvidia will collaborate with Inspur, one of its major distributor partners in China. The chip, tentatively named the "B20," is expected to begin shipping in the second quarter of 2025, according to a separate source.
While Nvidia and Inspur have not made any public announcements regarding this development, the move is seen as a strategic response to the challenges posed by China's Huawei Technologies and Tencent Holdings-backed Enflame. These companies have made significant inroads into the domestic market for advanced AI processors, benefiting from the tighter export controls imposed by the US.
China currently accounts for approximately 17% of Nvidia's revenue, down from 26% two years ago due to US sanctions. The introduction of a China-compatible chip from the Blackwell series would bolster Nvidia's position in the market and help mitigate the impact of these challenges.
The H20 chip, Nvidia's most advanced offering for the China market, initially faced difficulties when it was launched earlier this year. The US firm priced it below a rival chip from Huawei, resulting in a slow start. However, sales have been rapidly growing, according to insider sources. It is estimated that Nvidia is on track to sell over 1 million H20 chips in China this year, generating upwards of $12 billion in revenue.
As expectations rise for continued pressure on semiconductor-related export controls, the US is reportedly urging the Netherlands and Japan to further restrict China's access to advanced chip-making equipment. Additionally, the Biden administration is said to be considering measures to regulate the use of large language models, the core software behind generative AI services like ChatGPT.
The news of Nvidia's plans for a China-compatible version of the Blackwell AI chip has already had an impact on the market, with the company's shares rising by 1.4% in US premarket trading.
Nvidia is reportedly developing a China-compatible version of its flagship Blackwell AI chip.
The move is a response to tighter US export controls on cutting-edge semiconductors to China.
Nvidia will collaborate with Inspur for the launch and distribution of the chip, tentatively named the "B20."
Source: SCMP