Key points:
- Nvidia is developing a new AI chip called “B20” for the Chinese market, compatible with U.S. export controls.
- The chip is part of Nvidia’s “Blackwell” series, with the B200 being 30 times faster than its predecessor for certain tasks.
- Nvidia is collaborating with Inspur, a major Chinese distributor, for the launch and distribution of the B20.
- This move comes after U.S. tightened export controls on advanced semiconductors to China in 2023.
- Nvidia’s H20 chip, designed for China, is expected to generate over $12 billion in sales this year.
Nvidia, the leading AI chip manufacturer, is reportedly working on a new version of its flagship AI chip specifically designed for the Chinese market.
This development comes as the company navigates stringent U.S. export controls while aiming to maintain its strong presence in one of the world’s largest technology markets.
According to sources familiar with the matter, Nvidia is developing a chip tentatively named “B20,” which will be part of its recently unveiled “Blackwell” series.
The B20 is being created to comply with current U.S. export regulations, which were tightened in 2023 to prevent China from making breakthroughs in supercomputing that could aid its military.
Nvidia plans to collaborate with Inspur, one of its major distribution partners in China, for the launch and distribution of the B20. This partnership is crucial for Nvidia’s strategy to maintain its market share in China, which has declined from 26% to 17% of the company’s revenue over the past two years due to U.S. sanctions.
The Blackwell series, announced in March 2024, represents a significant leap in AI processing capabilities. Within this series, the B200 chip is reported to be 30 times faster than its predecessor for certain tasks, such as generating responses in chatbots.
The B20, tailored for the Chinese market, is expected to offer similar advancements while adhering to export restrictions.
This move by Nvidia comes at a time when Chinese technology giants like Huawei and startups such as Tencent-backed Enflame are making inroads into the domestic market for advanced AI processors. By developing chips specifically for China, Nvidia aims to fend off these challenges and maintain its dominant position.
Despite initial challenges, Nvidia’s efforts in the Chinese market have shown promising results. The company’s H20 chip, designed specifically for China, is on track to sell over 1 million units this year, potentially generating more than $12 billion in revenue, according to estimates from research group SemiAnalysis.
However, the development of the B20 and Nvidia’s strategy in China occur against a backdrop of ongoing geopolitical tensions and evolving U.S. export policies. The Biden administration is reportedly considering further measures to restrict the sale of advanced AI models and technologies to China, which could impact future chip developments and sales.
