NVIDIA is eyeing a significant expansion in China’s AI market beyond just their H20 AI accelerator. The buzz is about introducing a new Blackwell-based solution soon.
NVIDIA might lean on the Blackwell B20 AI chip, pending regulatory approval. The removal of the H20 AI chip ban opens up significant opportunities for NVIDIA, allowing them to introduce next-gen solutions based on the Blackwell architecture to the domestic markets. Previously, export restrictions had disrupted their H20 orders from Chinese customers, but those chips had already been phased out in favor of future innovations.
The current narrative is that NVIDIA will not accept new H20 AI chip orders, as they are gearing up to launch a new market solution by the end of the year. With China’s AI market having relied on the Hopper generation for several years, NVIDIA is keen to bring the region up to speed, as it lags behind the global release schedule by at least three generations.
While the H20 has long been discontinued, NVIDIA holds a substantial remaining inventory, valued in the billions, ample to meet at least one quarter of China’s AI needs. Industry rumors suggest the Blackwell-based B20 chip might debut next quarter, providing NVIDIA an opportunity to deplete existing stock and introduce new products. Additionally, the company seems to be preparing for a broader strategy with multiple chips, including the B20, B30, and RTX 6000D, aimed at different segments of the market.
