NVIDIA Corporation NVDA The company is reportedly developing new AI chips specifically for the Chinese market, designed to comply with US export controls.
what happenedAccording to an anonymous source, Jensen HuangNvidia Inspur, The company has partnered with a major distribution partner in China to begin the launch and distribution of a new chip, tentatively named “B20.” The chip is part of Nvidia's “Blackwell” series, which was launched in March, and is expected to go into mass production later this year, Reuters reported on Monday. The chip in that series, the B200, is said to be 30 times faster than previous-generation chips at certain tasks.
The move follows Washington's decision to tighten restrictions on semiconductor exports to China in 2023. Since then, Nvidia has developed three chips for the Chinese market. The new chips could bolster Nvidia's efforts to counter competition from Chinese tech giants. Huawei and TencentSupported startups In flames.
China accounted for about 17% of Nvidia's revenue in the year to January, down from 26% two years ago because of U.S. sanctions. After a slow start, Nvidia's most advanced chip for China, the H20, is expected to sell more than 1 million units this year and generate more than $12 billion in revenue, according to research group SemiAnalysis.
The US is widely expected to keep up pressure on semiconductor-related export controls, with initial plans to impose restrictions on cutting-edge AI models.
Nvidia has not yet responded to Benzinga's inquiries.
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Why is this important?This development was revealed in a separate report Google and Microsoft The Chinese government is providing Chinese companies with access to Nvidia's AI chips through data centers outside China despite U.S. restrictions, seen as a workaround for Biden administration restrictions aimed at blocking Chinese companies from using U.S. artificial intelligence technology, particularly advanced semiconductors.
In July, Nvidia said it planned to sell $12 billion worth of artificial intelligence chips in China this year, despite U.S. export controls.
In May, the Chinese government urged domestic tech giants to reduce their reliance on foreign chips, particularly those made by Nvidia, and to buy more domestically made AI chips.
Price Trends: Nvidia shares closed at $117.93 on Friday, according to Benzinga Pro.
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This story was written and edited with Benzinga Neuro. Pooja Rajkumari
