The Blubber

Nvidia is preparing to release a new artificial intelligence chip for the Chinese market, set to launch at a significantly lower price point than its recently restricted H20 model, according to sources familiar with the plan. Mass production could begin as early as June.

The upcoming GPU, part of Nvidia’s latest Blackwell-architecture AI processors, is expected to be priced between $6,500 and $8,000—substantially less than the $10,000–$12,000 price tag of the H20, two sources told Reuters. The lower price is attributed to the chip’s scaled-down specifications and simplified manufacturing requirements.

The new chip will reportedly be based on Nvidia’s RTX Pro 6000D, a server-grade graphics processor. It will feature standard GDDR7 memory rather than the more advanced high-bandwidth memory (HBM) and will not use Taiwan Semiconductor Manufacturing Co.’s advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging technology, the sources said.

Neither the chip’s specs, price, nor production timeline had previously been made public. All three sources requested anonymity because they were not authorized to discuss the matter with media.

An Nvidia spokesperson commented that the company is still assessing its “limited” options. “Until we finalize a new product design and receive U.S. government approval, we’re effectively shut out of China’s $50 billion data center market,” the spokesperson said.

TSMC declined to comment.

Navigating Export Restrictions

China continues to be a vital market for Nvidia, representing 13% of its revenue in the last fiscal year. This marks the third time the company has had to develop a customized chip for China due to U.S. export controls aimed at curbing Beijing’s access to cutting-edge technology.

After the H20 was effectively blocked by new U.S. rules in April, Nvidia initially explored a downgraded version of the chip for the Chinese market, but that plan fell through. CEO Jensen Huang noted last week that the older Hopper architecture used in the H20 can no longer be altered to comply with current U.S. export limits.

The final name for the new chip has yet to be confirmed. However, GF Securities, a Chinese brokerage, speculated in a research note on Tuesday that it may be branded as the 6000D or B40. The note did not provide pricing details or cite sources.

In addition to this chip, Nvidia is also working on another Blackwell-based processor for China, slated to enter production as early as September, two sources said. Reuters has not confirmed the technical details of that second model.

Nvidia’s grip on the Chinese market has slipped dramatically—from a dominant 95% share before 2022 to about 50% now—due to the tightening U.S. export restrictions. The company now faces stiff competition from Huawei, which produces the Ascend 910B chip.