Nvidia moves to preserve key China market as Washington tightens controls on AI tech exports.
Nvidia (NVDA) is redesigning some of its AI chips to keep selling to top Chinese customers without violating U.S. export restrictions, The Information reported Friday. The company has reportedly briefed giants like Alibaba, ByteDance (TikTok’s parent), and Tencent about the new chip strategy, citing three sources involved.
Nvidia CEO Jensen Huang informed Chinese clients of the plan during his Beijing visit in mid-April, just days after Washington tightened curbs on the export of Nvidia’s H20 AI chips to China.
- Nvidia expects samples of the redesigned chips to be ready as early as June, according to The Information.
- The company is also developing a China-specific version of its newest Blackwell AI chip.
What’s at stake:
- Nvidia has warned that the latest U.S. restrictions could cost it $5.5 billion in charges.
- China remains a crucial market for Nvidia’s cutting-edge AI chips, but U.S. officials are intent on blocking Beijing from accessing the most advanced AI technology to maintain a competitive edge.
No official comments yet: Nvidia declined to comment on the report, and requests for comment from Alibaba, ByteDance, Tencent, and the U.S. Commerce Department were not immediately returned.
As Washington sharpens its focus on China in the global AI race, Nvidia is trying to balance compliance with U.S. rules while defending its market share in one of the world’s largest tech markets.
