TLDR: Nvidia is reportedly developing a new artificial intelligence chip for China, based on its cutting-edge Blackwell architecture, which is designed to be more powerful than the currently available H20 model. This move comes amidst ongoing U.S. export restrictions and aims to maintain Nvidia’s significant presence in the Chinese AI market.
Nvidia (NASDAQ: NVDA) is reportedly in the process of developing a new artificial intelligence chip specifically for the Chinese market, a strategic move to navigate ongoing U.S. export restrictions while maintaining its crucial foothold in the region. This new chip, based on Nvidia’s advanced Blackwell architecture, is anticipated to deliver superior performance compared to the H20 model, which is currently permitted for sale in China.
Sources familiar with the matter indicate that the new chip, tentatively named the B30A, will feature a single-die design. It is expected to offer approximately half the raw computing power of the dual-die configuration found in Nvidia’s flagship B300 accelerator. Despite this scaling, the B30A is designed to surpass the capabilities of the H20, which is built on the previous Hopper architecture. Key features such as high-bandwidth memory (HBM) and Nvidia’s NVLink technology, crucial for rapid data transfers between chips, are expected to be integrated into the B30A, mirroring capabilities found in the H20.
The specifications for the B30A are still being finalized, but Nvidia aims to provide samples to its Chinese customers for testing as early as next month. This accelerated development underscores Nvidia’s commitment to the Chinese market, which accounted for a significant 13% of its revenue in the last fiscal year and 14% in 2024.
The development unfolds against a complex backdrop of U.S.-China trade relations and evolving export controls on advanced AI chips. U.S. President Donald Trump recently indicated a willingness to consider allowing Nvidia to sell scaled-down versions of its most advanced AI chips to China. Trump suggested that a deal could be made for ‘a somewhat enhanced — in a negative way — Blackwell,’ implying a reduction in the chip’s capabilities by ‘30% to 50%.’
Nvidia has affirmed its commitment to compliance, with a company spokesperson stating, ‘We evaluate a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow. Everything we offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use.’
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China’s access to advanced AI chips remains a contentious issue. Nvidia was only cleared in July to resume sales of the H20, a chip specifically developed for China after U.S. export restrictions were imposed in 2023. However, the company faced an abrupt halt in sales in April before the July clearance. The company also recently pushed back against claims from Chinese state media regarding security risks and alleged ‘backdoors’ in its H20 chips, asserting that its products contain no vulnerabilities for unauthorized remote control. The competitive landscape in China is also intensifying, with local chipmakers like Huawei posing a growing challenge to Nvidia’s market dominance.
