NVIDIA CEO Jensen Huang has indicated that the U.S. export controls on AI chips to China have proven unsuccessful. In response, NVIDIA is preparing to launch a new AI chip specifically designed for the Chinese market, priced lower than the current H20 model, with production expected to begin as early as June.

According to Reuters, this new chip will utilize NVIDIA's latest Blackwell architecture, with an anticipated price range of $6,500 to $8,000, significantly lower than the H20's price of $10,000 to $12,000. The price difference stems from the new chip's lower specifications and simplified manufacturing process. Sources indicate that the chip will be based on the NVIDIA RTX Pro 6000D and will use conventional GDDR7 memory, not high bandwidth memory (HBM) or TSMC's advanced CoWoS packaging technology.

A NVIDIA spokesperson stated that the company is still evaluating feasible "limited options" and cannot re-enter the large Chinese data center market, estimated at $50 billion, until it receives approval from the U.S. government. According to NVIDIA's financial reports, China contributed 13% of total revenue last year, making it an extremely important market. Since the U.S. banned the export of the H20 in April, NVIDIA had considered launching a downgraded version, but that plan ultimately did not materialize.

Jensen Huang also acknowledged that the older Hopper architecture used in the H20 can no longer meet the new round of export restrictions, necessitating a fundamental redesign of the product's architecture. Reports suggest that the new chip may be named "6000D" or "B40", and another chip based on Blackwell is expected to begin production as early as September.