NVIDIA plans to launch a new AI chip for the Chinese market at a lower price than its restricted H20 model, with mass production commencing in June.
The upcoming AI chip will be based on NVIDIA’s most recent generation Blackwell architecture AI processors, priced between $6500 and $8000, contrasting with the H20 model priced at $10,000 to $12,000.
The reduced pricing is due to simpler manufacturing requirements and lower specifications, enabling cost reduction through simplified designs.
Export restrictions on NVIDIA's AI chips to China have led to a significant drop in market share from 95% to 50%, prompting the company to introduce this new AI chip to leverage its existing presence in the Chinese AI sector.