Nvidia Launches Modified Gaming Chip Complying with US Export Controls Targeting China

U.S. chipmaker Nvidia has released a modified version of its advanced gaming chip, designed to adhere to U.S. export controls specifically aimed at China. The company claims that the new chip offers unparalleled performance, efficiency, and AI-driven graphics capabilities.

Starting in January, Chinese customers will have access to the product, as confirmed by a spokesperson from Nvidia in a recent statement to Reuters.

Compliance with U.S. Government Export Controls

According to the spokesperson, the newly launched chip, the GeForce RTX 4090 D, has been meticulously crafted to comply fully with U.S. government export controls. Throughout the development process, Nvidia remained actively engaged with U.S. government authorities to ensure seamless compliance, as per U.S. News.

This launch marks Nvidia's first official release of a China-focused chip since the Biden Administration implemented revised export rules back in October. The updated regulations blocked two previously engineered Nvidia AI chips, the A800 and H800, and the high-performance gaming chip, the RTX 4090.

However, industry insiders predict that Nvidia may unveil three new AI chips intended for the Chinese market in response to these regulations.

Delayed Chip Launch and Market Impact

Despite initial projections suggesting a November 16 announcement, Nvidia recently informed Chinese customers that the launch of one of the anticipated chips would be postponed until the first quarter of next year. As of now, the remaining two chips have not made an appearance on Nvidia's China website.

Nvidia's delay in the release of these chips is anticipated to create opportunities for domestic companies, including Huawei Technologies, to gain traction in China's $7 billion AI chip market.

Nvidia has been a dominant figure in China's AI chip market, holding over 90% market share. Analysts speculate that the U.S. restrictions will open up avenues for domestic players to establish their presence in this lucrative sector. In an interview with Reuters on December 11, U.S. Commerce Secretary Raimondo noted that Nvidia could continue selling AI chips to China, but with limitations on processing power.

Specifications and Pricing

Compared to the banned RTX 4090, the China-focused RTX 4090 D slightly reduces gaming and creation performance, approximately 5% slower. Notably, the China-focused chip will be priced at 12,999 yuan ($1,842), making it 350 yuan ($50) more expensive than the second most advanced chip within the product series available to Chinese customers.

Photo: The Conmunity - Pop Culture Geek from Los Angeles, CA, USA/Wikimedia Commons(CC by 2.0)