Nvidia, AMD Adapt AI Chips for China
- Sarah Ruivivar
- Jun 3
- 2 min read
In a tech tango with international regulations, Nvidia and AMD are gearing up to launch new AI chips in China, cleverly sidestepping US export restrictions.
According to DigiTimes, the chip giants are crafting GPUs tailored for AI workloads, set to hit the Chinese market as early as July.
Nvidia is prepping a streamlined version of its AI GPU, charmingly dubbed "B20," while AMD is rolling out the Radeon AI PRO R9700, a workstation GPU designed to meet the bustling demands of AI tasks. This strategic move allows both companies to continue their presence in the lucrative Chinese market without stepping on regulatory toes.
Meanwhile, Nvidia is reportedly developing a budget-friendly AI chip, built on its Blackwell architecture, with a price tag between $6,500 and $8,000. This comes as a more affordable alternative to its H20 GPUs, which are priced at a princely $10,000 to $12,000 each.
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The financial impact of these restrictions is no small fry. Nvidia reported a hefty $4.5 billion charge in Q1 due to licensing hurdles, which also prevented the shipment of an additional $2.5 billion worth of H20 chips. Looking ahead, the company anticipates an $8 billion revenue hit in Q2, thanks to these licensing challenges.
As Nvidia and AMD navigate these choppy regulatory waters, their innovative adaptations could set a precedent for how tech companies balance compliance with market demands. Stay tuned as these tech titans continue to dance around the complexities of global trade!
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