According to reports, Nvidia will manufacture a cheaper Blackwell artificial intelligence processor for China when the United States imposes export restrictions.

According to reports, Nvidia will manufacture a cheaper Blackwell artificial intelligence processor for China when the United States imposes export restrictions.

According to individuals familiar with the topic, Nvidia (NVDA.O), opens a new tab, will unveil a new artificial intelligence chipset for China at a price that is substantially cheaper than its previously limited H20 model. Additionally, the company intends to begin mass manufacturing as early as June.
According to two of the sources, the graphics processing unit, also known as a GPU, will be a component of Nvidia’s most recent generation of artificial intelligence processors based on the Blackwell architecture. It is anticipated that the GPU will be cost between $6,500 and $8,000, which is much lower than the price range of $10,000 to $12,000.

As a result of its less stringent criteria and less complicated production needs, the price has been reduced.
According to the two sources, it will be built on Nvidia’s RTX Pro 6000D, which is a graphics processor designed for servers, and it will make use of regular GDDR7 memory rather than more modern high bandwidth memory.

In addition, they said that it will not make use of the innovative Chip-on-Wafer-on-Substrate (CoWoS) packaging technology that is offered by Taiwan Semiconductor Manufacturing Co. (2330.TW), opens new tab.
According to prior reports, the pricing of the new chip, its specs, and the manufacturing schedule have not been disclosed.
For the sake of this piece, Reuters contacted three different sources, but they refused to be named because they were not authorized to talk to the media.

According to a spokeswoman for Nvidia, the business is currently assessing the “limited” choices it has available. “Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market.”
The TSMC was not willing to comment.

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For Nvidia, China continues to be a significant market, as it accounted for 13% of the company’s revenue in the most recent fiscal year. It is the third time that Nvidia has been forced to modify a graphics processing unit (GPU) for the world’s second-largest economy as a result of limitations imposed by the United States government, which is eager to impede the growth of technology in China.
According to insiders, Nvidia first contemplated manufacturing a reduced version of the H20 for China when the United States essentially banned the H20 in April. However, this strategy did not pan out as planned.
According to statements made by Nvidia CEO Jensen Huang last week, the company’s older Hopper architecture, which is used by the H20, is unable to allow any additional upgrades due to the existing export limitations imposed by the United States.