NVIDIA to Launch AI Chip for the Chinese Market, Priced Significantly Lower than the Previous H20 Chip

On May 25th, as per Reuters, the U.S. chip behemoth Nvidia is set to introduce an artificial intelligence (AI) chip based on the Blackwell architecture into the Chinese market. The price of this chip is notably lower than that of the previous H20 chip, and it is anticipated to commence mass production as early as June. The report indicates that this AI processor, which employs the latest-generation Blackwell architecture, is expected to be priced between $6,500 and $8,000, which is significantly lower than the H20. Generally, a lower price typically implies relatively weaker chip specifications and a more streamlined manufacturing process. This will be Nvidia's third instance of launching a downgraded version chip for the Chinese market in compliance with U.S. regulatory requirements. The U.S. government recently prohibited Nvidia from selling the H20 chip based on the Hopper architecture to China.