Nvidia is building a new AI chip for China that follows US rules

Nvidia

Nvidia, the world’s leading AI chipmaker, is working on a brand-new chip just for China and it’s designed to follow strict US export rules.

According to a report by The Information, the chip, called B30, is expected to launch this year, with over 1 million units planned for production. This move comes as Nvidia tries to hold on to its big market in China, despite tighter tech restrictions from the US government.

Nvidia hasn’t officially confirmed the details yet. But during a recent earnings call, the company’s CEO Jensen Huang did say they were thinking about creating a new chip for China. Now, it seems that plan is moving forward.

The new chip will reportedly be based on Nvidia’s Blackwell platform, and is expected to be introduced in July, according to analysts at Jefferies. It will allow users to link multiple chips together to build powerful computing systems — something that’s key for AI research and big data tasks.

This development comes after the US government blocked Nvidia from exporting its H20 chips to China. That chip, also made for Chinese customers, now requires a special license to be sold. Because of this, Nvidia expects to lose about $8 billion in revenue this quarter, on top of a $4.5 billion hit last quarter due to excess inventory.

Despite the challenges, Huang has made it clear that Nvidia is committed to China, which still makes up about 14% of its total revenue. But he’s also warned that if American companies are blocked too much, Chinese firms like Huawei could quickly catch up in the AI race.

For now, Nvidia’s new B30 chip might be its best bet to stay in the Chinese market — legally and competitively.