Technology giant NVIDIA is reportedly planning to launch a new artificial intelligence (AI) chipset for China at a significantly lower price than recent models to avert United States restrictions on exports to the world’s second largest economy.
The world’s largest company, which designs and manufactures graphics processing units (GPUs), plans a cost-effective alternative to its previously restricted H20 model with mass production starting as early as June, according to media reports.
The GPU will be part of NVIDIA's latest generation Blackwell-architecture AI processors and was expected to be priced between $6,500 and $8,000, well below the $10,000-$12,000 the H20 sold for, Reuters reported in this article.
An NVIDIA spokesperson was quoted as saying the company was still evaluating 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 centre market,” the spokesperson said.
This is the time occasion NVIDIA has developed a GPU for China to get around restrictions applied by U.S. authorities to limit technological development in the Asia nation.
NVIDIA CEO Jensen Huang previously warned that the company’s market share in China was falling due to export curbs with its main competitor Huawei (HWT.UL) picking up the lost sales.
NVIDIA (NASDAQ: NVDA) shares closed $1.54 (1.16%) lower at US$131.29, capitalising the company at $3.2 trillion.
