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In response to stringent U.S. export controls, Nvidia is set to introduce a modified version of its latest Blackwell AI chips for the Chinese market. This strategic move aims to maintain Nvidia’s presence in China while adhering to regulatory constraints.
New Blackwell AI Chips
The new chip, tentatively named the “B20,” is a customized variant of Nvidia’s flagship Blackwell series. While it offers reduced capabilities compared to its counterparts, the B20 is designed to comply with U.S. export regulations. These new rules under the Trump administration limit the performance and memory bandwidth of AI chips sold to China.
To compensate for the reduced performance, Nvidia plans to deploy the B20 in specialized servers, allowing multiple chips to work in tandem and deliver competitive AI processing power.
U.S.-China Tech Collabs for AI Chips
Nvidia’s collaboration with Chinese tech firm Inspur will facilitate the distribution of the B20 chips within China. Chinese investors can expect the shipment to commence in the second quarter of 2025.
The development of the B20 comes after the U.S. government imposed tighter export controls on high-performance AI chips, citing national security concerns. These restrictions have significantly impacted Nvidia’s business in China, with the company’s market share dropping from 95% to 50% over four years.
Nvidia Response to U.S. Sanctions
Nvidia CEO Jensen Huang has criticized the export controls, labeling them a “failure” that has inadvertently accelerated the development of domestic AI chips in China. He emphasized that such restrictions have not only hurt U.S. companies financially but have also spurred Chinese firms to invest more heavily in their own AI technologies.
Despite the challenges, Nvidia remains committed to the Chinese market. The company plans to open a new research and development center in Shanghai, aiming to better understand local customer needs and ensure compliance with U.S. regulations.
The introduction of the B20 chip represents Nvidia’s ongoing efforts to navigate complex international regulations while maintaining its global competitiveness in the AI chip industry.
