Nvidia plans to launch a new graphics processor based on Blackwell architecture, designed as an affordable option for the Chinese market amid US export restrictions.
Affordable Alternative to H20
The new chip is expected to cost between $6,500 and $8,000—markedly less than the H20, which was priced in the $10,000 to $12,000 range. The reduced price reflects simpler design elements and downgraded specifications that make it easier to produce. Unlike the H20, this processor will rely on traditional GDDR7 memory instead of high-bandwidth memory (HBM).
Geared Toward China’s Market Demands
The GPU, reportedly based on Nvidia’s RTX Pro 6000D, is aimed at retaining a foothold in China’s $50 billion data center market amid ongoing U.S. export restrictions. This move comes as Washington continues to tighten controls on advanced chip exports to China, curbing access to high-performance AI technologies.
Strategic Design Shift
An Nvidia spokesperson acknowledged the company is assessing limited options due to the current regulatory landscape. "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 spokesperson said. This response highlights the growing tension between U.S. trade policy and global tech demand as Nvidia works to adapt product offerings without violating export regulations.
The launch of Nvidia's new chip reflects the company's efforts to adapt to a challenging political environment and maintain a foothold in a significant market, despite increasing restrictions.
