NVIDIA Corporation Set To Launch New AI Chipset Amid US Export Restrictions

$NVDA

NVIDIA Corporation (NASDAQ:NVDA) is gearing up to introduce a new artificial intelligence chipset tailored for the Chinese market, priced significantly lower than its recently restricted H20 model. This strategic move comes as a response to the tighter US export controls that have impacted the company’s operations in China, a major market for NVIDIA’s high-performance semiconductors. The new chipset, part of NVIDIA’s advanced Blackwell-architecture AI processors, is expected to enter mass production as early as June.

It aims to offer a cost-effective solution without compromising on quality, with prices ranging between $6,500 and $8,000—substantially lower than the $10,000 to $12,000 range of the H20 model. This development is particularly significant as it reflects NVIDIA’s ongoing efforts to navigate the complex landscape of international trade and technology transfer.

The introduction of this new GPU underscores the company’s commitment to maintaining a strong presence in China’s lucrative $50 billion data center market, despite the challenges posed by US regulations. The GPU will be based on NVIDIA’s RTX Pro 6000D, a server-class graphics processor and will utilize conventional GDDR7 memory. This setup is designed to meet the less stringent requirements of the Chinese market while still delivering robust performance for AI application.

NVIDIA Corporation’s launch of a new, more affordable AI chipset for the Chinese market represents a strategic maneuver to overcome the hurdles imposed by US export controls. This move highlights the company’s resilience and innovative spirit, ensuring its continued relevance and leadership in the global semiconductor industry.

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