NVIDIA is set to release a new AI chip, the H20, in China within the next two months. The chip has been modified to comply with the latest US export controls. NVIDIA has informed its Chinese clients, including major cloud service providers, about the upcoming release.
The original H20 was considered the most powerful chip NVIDIA was allowed to sell in China. However, new US regulations require an additional export license for the chip, prompting NVIDIA to reduce its specs. The company has found technical solutions to modify the chip’s design, significantly downgrading the Chinese version’s specs, particularly its memory capacity.
End-users will be able to adjust settings to match the chip’s capabilities. Earlier this year, Reuters reported that Tencent, Alibaba, and ByteDance increased their H20 orders amid growing demand for cost-effective AI models among developers like DeepSeek.
US Export Controls Impact NVIDIA’s China Sales
The US has tightened its export controls on AI chips to China, affecting NVIDIA’s sales. The new regulations have forced NVIDIA to modify its H20 chip to comply with the rules.
The modified H20 chip will be released in China in July. NVIDIA has notified its Chinese clients about the changes and the upcoming release. The company’s decision to reduce the chip’s specs is a response to the new US export controls.
Chinese Tech Giants Boost H20 Orders
Tencent, Alibaba, and ByteDance have increased their orders for the H20 chip. The demand for cost-effective AI models is driving this growth. Developers like DeepSeek are looking for affordable AI solutions, and the H20 chip is expected to meet their needs.
- NVIDIA is releasing a modified H20 AI chip in China.
- The chip has been downgraded to comply with US export controls.
- Chinese tech giants have boosted their H20 orders.
Source: Reuters