NVIDIA is working on a new AI chip designed for the Chinese market. The chip is being tailored to comply with US export regulations.
Modified Chip Design
The company has informed major clients, including Alibaba Group, ByteDance, and Tencent Holdings, about the new chip. NVIDIA’s CEO, Jensen Huang, shared the plan with these clients during a trip to Beijing in mid-April. This was just days after the US announced tighter export controls on AI chips.
The new chip is expected to be available as early as June. It will have specs similar to those currently restricted for export to China. NVIDIA is also developing a China-friendly version of its latest AI chip, Blackwell.
Impact of US Export Controls
Before the new US export controls, NVIDIA’s H20 chip was the main AI chip exported to China without violating US law. The new regulations are expected to cost NVIDIA around $5.5 billion.
The company’s efforts to adapt to the changing regulatory landscape demonstrate its commitment to maintaining a presence in the Chinese market.