NVIDIA, AMD Unveil New AI Chips in China Under US Rules
NVIDIA and AMD to Release New AI Chips in China Under US Export Rules
As the world of artificial intelligence continues to evolve, the tech giants NVIDIA and AMD are taking strategic steps to navigate the complex landscape of international trade regulations. In response to the latest US export restrictions on advanced semiconductor technology to China, both companies are preparing to launch new AI chips specifically designed for the Chinese market. These chips are expected to be released as early as July 2025, marking a significant effort by NVIDIA and AMD to maintain their presence in one of the largest markets for AI and semiconductor products[1][3].
Historical Context and Background
The US has been imposing export restrictions on advanced semiconductor technology to China, which has significantly impacted companies like NVIDIA and AMD. These restrictions aim to limit China's access to cutting-edge technology, particularly in areas like AI and supercomputing. However, China remains a critical market for AI applications, with a vast demand for AI chips used in machine learning, data processing, and other AI workloads[1][3].
Current Developments: New AI Chips
NVIDIA's B20 Chip
NVIDIA is developing a toned-down version of one of its AI chips, codenamed the "B20." This GPU is designed to offer AI processing power without breaching the US export restrictions. Additionally, NVIDIA is working on a more affordable AI chip based on its Blackwell architecture, which is expected to be priced between $6,500 and $8,000. This is a significant reduction compared to its high-end H20 chips, which typically retail for $10,000 to $12,000[1][3].
AMD's Radeon AI PRO R9700
AMD is introducing the Radeon AI PRO R9700, a workstation GPU focused on handling AI tasks while adhering to the export limitations. This move highlights AMD's commitment to maintaining its market share in China despite the challenges posed by US regulations[1][3].
Financial Implications
The US export restrictions have had a substantial financial impact on NVIDIA. In the first quarter of fiscal 2026, NVIDIA reported a $4.5 billion charge related to unsold H20 chip inventory and an additional $2.5 billion in lost revenue from unshipped H20 chips. The company anticipates an $8 billion revenue loss in the second quarter due to ongoing licensing requirements[3].
Future Implications and Potential Outcomes
As NVIDIA and AMD continue to adapt to the export restrictions, their strategies will be crucial in maintaining their positions in the Chinese AI market. Despite the challenges, both companies recognize the strategic importance of China. NVIDIA's CEO Jensen Huang emphasized, "The platform that wins China is positioned to lead globally today," highlighting the market's significance[3].
Real-World Applications and Impacts
The new AI chips from NVIDIA and AMD are expected to support various AI applications, including machine learning and data processing, which are essential for industries like healthcare, finance, and manufacturing. These chips will help Chinese companies to continue leveraging AI technology despite the export restrictions.
Comparison of New AI Chips
| Feature | NVIDIA B20 Chip | AMD Radeon AI PRO R9700 |
|---|---|---|
| Architecture | Modified to comply with US restrictions | Designed for AI workloads within export limits |
| Pricing | Part of NVIDIA's broader strategy (related Blackwell chip priced between $6,500 and $8,000) | Competitive pricing to maintain market presence |
| Target Market | Chinese AI sector | Workstation users in China focusing on AI tasks |
| Key Applications | Machine learning, data processing | AI workloads, professional computing |
Different Perspectives
While NVIDIA and AMD are focusing on compliance with US regulations, China is also investing heavily in developing its own semiconductor technology. This could lead to a reduction in reliance on US companies over time[4].
Conclusion
In conclusion, the launch of new AI chips by NVIDIA and AMD in China reflects the ongoing efforts to navigate complex international trade regulations while maintaining a strong presence in a critical market. As AI technology continues to evolve, these strategic moves will be pivotal in shaping the future of the AI industry. Whether these new chips will be enough to offset the losses from export restrictions remains to be seen, but one thing is clear: the race to lead in AI is heating up, and China is at the forefront of this battle.
Excerpt: NVIDIA and AMD are launching new AI chips in China to comply with US export restrictions, aiming to maintain their presence in this crucial market.
Tags: NVIDIA, AMD, AI Chips, China, US Export Rules, Artificial Intelligence, Machine Learning, Semiconductor Technology
Category: artificial-intelligence