Nvidia to launch lower-cost Blackwell AI chip tailored for China amid US export bans
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Nvidia is reportedly planning to launch a cheaper Blackwell AI chip specifically made for China amid the US export restrictions, sources close to the developments have revealed. According to sources cited in a Reuters report, Nvidia is expected to start mass production of the new AI chip in June, which will be sold at a significantly lower price compared to the restricted H20 model. Nvidia’s price for the new chip reflects its weaker specs According to the two sources cited, the restricted H20 was priced at between $10,000 and $12,000. But Nvidia has set the price for the new Blackwell processor at between $6,500 and $8,000. The price is reportedly a reflection of the weaker specifications for the latest generation Blackwell, as well as the simpler production processes. The sources added that the new chip, tailored for the Chinese market, will be based on Nvidia’s RTX Pro 6000D, a server-class graphics processor. It will also use conventional GDR7 memory as opposed to the more advanced high bandwidth memory, according to the report. While the three sources that Reuters cited refused to be named as they were not authorized to comment on the matter, they revealed that the new chip will not use Taiwan Semiconductor Manufacturing Co’s (2330.TW) advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging technology. Although TSMC refused to comment, a Nvidia spokesperson indicated that the company was still weighing its “limited” options. “Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market.” Nvidia Spokesperson. This comes as China has been a huge market for Nvidia, contributing 13% of the company’s total sales during the past financial year. The latest development marks the third time that the American chip-making firm has had to specially make a GPU…
Filed under: News - @ May 24, 2025 6:26 pm