NVIDIA is making a special AI chip just for China
What's the story
NVIDIA is gearing up to launch an artificial intelligence (AI) chip specifically tailored for the Chinese market. The move comes despite the ongoing US export restrictions on semiconductor technology. The new chip is likely to be launched as early as September, according to a report by Financial Times. It will be based on NVIDIA's Blackwell RTX Pro 6000 processor, which has already been modified to comply with current AI chip restrictions.
Feature limitations
AI chip won't have high-bandwidth memory or NVLink
The upcoming AI chip for China will not come with high-bandwidth memory or NVLink, NVIDIA's high-speed but low-latency communication interface. These are key components of the company's advanced AI chips. This indicates that the new product is a more basic version of its usual offerings, specifically designed to meet China's market needs while complying with US export restrictions.
Market strategy
CEO Jensen Huang to meet with senior Chinese officials
NVIDIA co-founder and CEO Jensen Huang is scheduled to meet senior Chinese officials, including the commerce minister, during his visit to Beijing next week. Despite growing domestic alternatives, many Chinese firms continue to favor NVIDIA's ecosystem. With its upcoming China-specific AI chip, the company aims to capitalize on that demand. However, ongoing US trade restrictions could still cost NVIDIA an estimated $8 billion in sales this quarter.