In response to U.S. restrictions on exporting advanced semiconductor technology to China, chipmakers Nvidia and AMD are preparing to introduce new GPU models designed for artificial intelligence workloads to the Chinese market. Taiwanese tech outlet DigiTimes reported the news, citing sources within the supply chain.
Nvidia is reportedly developing a scaled-down AI GPU code-named “B20,” while AMD is preparing to launch its “Radeon AI PRO R9700,” a workstation GPU tailored to handle AI tasks. According to the report, both companies are expected to begin selling these new chips in China starting in July.
Earlier this week, Reuters revealed that Nvidia is also working on a more budget-friendly AI chip built on its Blackwell architecture for the Chinese market, expected to be priced between $6,500 and $8,000. By contrast, the company’s current H20 GPUs are sold at $10,000 to $12,000 each.
Nvidia announced that it recorded a $4.5 billion charge in Q1 due to licensing constraints that limited the sale of its H20 AI chips to Chinese firms. Additionally, the company was unable to ship another $2.5 billion worth of H20 chips during the quarter. It now forecasts that these licensing requirements could result in an $8 billion revenue loss in Q2.
These developments underscore how U.S.-China tech tensions continue to impact the semiconductor industry and the global AI market. Nvidia and AMD's adaptive strategies appear to be efforts to maintain market presence while mitigating geopolitical and economic risks.
