As NVIDIA gears up for the large-scale production of its latest GB300 AI chip, there are reports indicating a significant reduction in the production of the GeForce Blackwell series. The tech giant is said to be cutting down GeForce RTX 50 series production in China by an estimated 20-30% to channel resources towards the burgeoning AI chip market. This shift highlights NVIDIA’s strategic focus on its Data Center segment, which contributes substantially to its revenue.
A leaker from Board Channels has suggested that NVIDIA will considerably reduce the manufacturing of GeForce RTX 50 series GPUs in China. This move allows the company to prioritize the development of the Blackwell AI chips, including the existing GB200, the China-exclusive B40, and the much-anticipated GB300, which is set to begin mass production soon.
Industry insiders report that NVIDIA’s RTX 50 series lineup has largely been launched, but production has been unstable, leading to a tight supply. Manufacturing lines for NVIDIA’s GB20X are running at full capacity, and with GB300 gearing up for production, wafer capacity is increasingly occupied, impacting RTX 50 series production volumes.
The availability of RTX 50 GPUs is already limited globally, with prices often exceeding 1.5 times the Manufacturer’s Suggested Retail Price (MSRP). Recent data shows a noticeable shortage, with shipments in China decreasing by 20-30% from May to June. Although the precise cause remains unclear, it likely ties back to the increased focus on AI chip development.
Despite ongoing challenges, the GeForce RTX 50 series faces further difficulties. Obtaining these GPUs at MSRP is nearly impossible, with prices often inflated by at least 20%. Contributing factors include the strategic pivot towards AI chips, driven by evolving market demands and regulatory conditions.
The Blackwell chips, particularly the GB200 and GB300, are not explicitly restricted in China, though their availability might be influenced by US export regulations. In the budget sector, NVIDIA seeks alternatives like the RTX PRO 6000D, known as B40, to cater to the Chinese market amid restrictions.
In summary, NVIDIA’s reallocation of resources towards AI chip production is poised to significantly impact the availability of the GeForce RTX 50 series. While the exact implications remain to be fully seen, the shift underscores the growing importance of AI technologies in NVIDIA’s strategic planning.
