Nvidia and AMD to sell chips in China to comply with American restrictions
To comply with American export regulations, Nvidia and AMD are reportedly developing new AI chips intended for sale in China. According to DigiTimes, the scaled-down GPUs will be available from July.
B20 and Radeon AI PRO R9700
Nvidia is reportedly working on a lighter version of its AI GPU under the codename “B20”. AMD is targeting workstations with the Radeon AI PRO R9700. Both chips have been modified to remain within export restrictions, writes TechCrunch.
The American measures are severely hampering Nvidia’s sales. In the first quarter, the company had to write off $4.5 billion due to licensing issues surrounding the H20 chip. Another $2.5 billion worth of chips could not be shipped. The expected impact on revenue in the second quarter is up to eight billion dollars.
Budget Option on the Horizon
According to Reuters, Nvidia is also working on a budget version of its Blackwell AI chip, intended for the Chinese market. It would cost between $6,500 and $8,000, compared to $10,000 to $12,000 for the H20.
Although access to high-end AI chips remains limited, demand in China remains high. Nvidia and AMD are now looking for ways to still deliver products in China and limit losses.