Chinese Firms Eye Nvidia AI Chips Amid Government Scrutiny
- tech360.tv
- 6 hours ago
- 2 min read
Alibaba, ByteDance, and other Chinese technology firms want artificial intelligence (AI) chips from Nvidia, even though Beijing regulators are discouraging such purchases. They seek reassurance on orders for Nvidia’s H20 model.
Firms are also closely monitoring Nvidia’s plans for a more powerful chip, tentatively named the B30A. This new chip is based on Nvidia’s Blackwell architecture.
The B30A, if approved for sale by Washington, is expected to cost about double the H20’s current price. The H20 currently sells for between USD 10,000 and USD 12,000. One source stated the B30A promises to be up to six times more powerful than the H20.
Both the H20 and the B30A are downgraded versions of models sold outside China. These chips were developed specifically to comply with U.S. export restrictions.
China generated 13% of Nvidia’s revenue in the past financial year. U.S. President Donald Trump has also made a deal requiring Nvidia to give the U.S. government 15% of its H20 revenue.
Chinese authorities have summoned companies, including Tencent and ByteDance, over their H20 purchases. They requested explanations and expressed concerns regarding information risks. Firms have not been ordered to stop buying Nvidia products.
Despite this pressure, demand for Nvidia chips remains strong in China. This is due to constrained supplies of domestic products from rivals like Huawei and Cambricon. Nvidia’s chips also reportedly perform better than local alternatives.
Uncertainty about Nvidia’s prospects in China led the U.S. firm to issue a cautious quarterly sales forecast in late Aug. This forecast excluded potential revenue from China, the world’s second-biggest economy. The company’s stock has since lost 6%.
Nvidia confirmed receiving some export licenses for the H20. However, shipping has not yet started as the company resolves issues related to the deal with the U.S. government. Chief Executive Officer Jensen Huang has assured Chinese customers about the H20’s availability.
Nvidia reportedly has an inventory of 600,000 to 700,000 H20 chips and has asked TSMC to produce more. Nvidia hopes to deliver samples of the B30A to Chinese clients for testing as early as Sept.
Huang estimates that the Chinese market could be worth USD 50 billion to Nvidia if it were able to offer competitive products. This potential relies on the company being able to offer competitive products there.
Chinese technology firms remain interested in Nvidia AI chips despite government discouragement.
Companies are monitoring Nvidia’s H20 shipments and plans for the more powerful B30A chip.
The B30A, if approved, is expected to be up to six times more powerful than the H20 and cost about double the H20, which sells for between USD 10,000 and USD 12,000.
Source: REUTERS
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