Exclusive: Nvidia to Launch Lower-Cost Blackwell AI Chip for China After H20 Ban

Nvidia plans to release a new AI chip for the Chinese market, priced significantly lower than its now-restricted H20 model, sources familiar with the matter told Reuters.

The upcoming GPU, part of the Blackwell architecture, is expected to cost between $6,500 and $8,000, compared to the H20’s $10,000–$12,000 price tag. Production is scheduled to begin as early as June, the sources said.

The reduced cost reflects weaker specifications and simpler design: the chip will use GDDR7 memory and not require Taiwan Semiconductor Manufacturing Co.'s advanced CoWoS packaging, helping it stay within U.S. export control limits.

“Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China's $50 billion data center market,” an Nvidia spokesperson said.

The chip—based on Nvidia’s RTX Pro 6000D—aims to maintain Nvidia’s footprint in China, which accounted for 13% of its revenue last year. However, the company’s market share has dropped from 95% to 50% following multiple rounds of U.S. export restrictions.

Nvidia is reportedly also working on a second China-specific Blackwell chip, slated for September production, though details remain undisclosed.

The latest U.S. export rules cap GPU memory bandwidth at 1.7–1.8 terabytes/second, down from the H20’s 4 TB/s. Analysts expect the new chip to stay just within that limit using GDDR7, making it compliant while enabling AI workloads.

The shift follows Nvidia's $5.5 billion inventory write-off and $15 billion in lost sales tied to the H20 export ban. With rising competition from Huawei’s Ascend 910B, Nvidia is under pressure to hold ground in a key global market.