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Nvidia's upcoming "B20" AI chip for the Chinese market will adhere to U.S. export restrictions, insiders reveal.
Nvidia Unveils "Blackwell" Chip Family for Commercial Production
A version of Nvidia's new flagship AI chips that is compatible with current U.S. export limitations is being developed for the Chinese market, according to four persons familiar with the situation.
March saw the unveiling of the "Blackwell" chip family, which is set for commercial production later this year, by the AI chip manufacturer. Two silicon squares, the size of the company's prior product, are combined in the new CPUs. When compared to its predecessor, the B200 in this series is 30 times faster at certain activities, such as providing chatbot responses.
Nvidia and Inspur to Distribute "B20" in China
The chip, which is being referred to as the "B20" in the industry, will be released and distributed by Nvidia in collaboration with Inspur, a key distributor partner in China, according to two sources. According to a separate source who spoke with Reuters, the "B20" is expected to begin shipments in the second quarter of 2025.
Since Nvidia has not made an official statement, the sources chose not to be named.
Nvidia declined to comment, according to a company spokeswoman. Requests for comment were not responded to by Inspur.
When the Reuters news came out, Nvidia shares in the US market went up 4%.
In an effort to forestall supercomputing advances that would benefit China's military, Washington imposed stricter regulations on the transfer of advanced semiconductors to China in 2023.
Nvidia Creates Unique Processors for Chinese Market
In the time after, Nvidia created three unique processors for the Chinese market.
Per Yahoo Finance, stricter export regulations, thanks to U.S. regulations, Chinese tech companies like Huawei and startups like Enflame, sponsored by Tencent, have been able to get into the U.S. market for sophisticated AI processors.
The American company's defenses would be fortified if Nvidia tailored a Blackwell series chip for the Chinese market.
Nvidia's Revenue from China Declines
In the year leading up to the end of January, China contributed approximately 17% of Nvidia's revenue, down from 26% a year before due to U.S. penalties.
The H20, Nvidia's flagship processor for the Chinese market, had a shaky launch this year due to the company's decision to price it lower than a competitor's chip, according to a May Reuters story.
