NVIDIA & AMD: New AI Chips for China Amid US Curbs
NVIDIA and AMD are set to introduce new AI chips in China that comply with U.S. export restrictions on advanced semiconductor technology. These modified chips aim to meet regulatory requirements while addressing the growing demand for AI capabilities in the Chinese market.
NVIDIA’s B20: A Stripped-Down AI GPU
NVIDIA plans to introduce the “B20,” a pared-down version of its AI GPU based on the latest Blackwell architecture. This chip is engineered to stay within the performance thresholds set by U.S. export controls, ensuring compliance while providing sufficient capabilities for AI workloads in China. The B20 is expected to be available in the Chinese market by July. Financial Times
AMD’s Radeon AI PRO R9700: Tailored for Compliance
Similarly, AMD is set to release the Radeon AI PRO R9700, a workstation GPU designed to handle AI tasks within the confines of U.S. export regulations. This chip aims to offer scalable solutions for AI inference and other workloads, aligning with the specific needs of the Chinese market. The Radeon AI PRO R9700 is anticipated to launch in the third quarter of 2025. Tom’s Hardware
Financial Implications and Strategic Adjustments
The U.S. export restrictions have significantly impacted NVIDIA’s financials. In the first quarter of 2025, the company reported a $4.5 billion charge due to licensing requirements that hindered sales of its H20 AI chips in China. Additionally, NVIDIA was unable to ship $2.5 billion worth of H20 chips during the same period. CimphonyReuters
Despite these challenges, NVIDIA’s overall performance remains robust, with a 69% year-over-year revenue increase, reaching $44.1 billion in the first quarter. The company’s data center revenue also grew by 73%, totaling $39.1 billion. The Guardian
Navigating Geopolitical Tensions
NVIDIA and AMD are developing AI chips tailored for the Chinese market to comply with U.S. export restrictions. These efforts highlight the companies’ strategies to balance regulatory adherence with market presence..BitcoinWorld
NVIDIA and AMD are adapting their strategies to navigate U.S. export restrictions on advanced AI chips to China. By developing compliant, lower-specification chips, they aim to maintain a presence in the Chinese market while adhering to regulatory requirements.Cimphony
Adapting to US Export Rules
The US government has imposed increasingly stringent export controls to prevent China from acquiring technology that could enhance its military capabilities. These controls particularly target high-performance AI chips used in applications like machine learning and artificial intelligence. To navigate these regulations, NVIDIA and AMD are reportedly designing new chips with reduced processing power, ensuring they fall within the permissible limits set by the US.
NVIDIA’s Approach
NVIDIA, a leading designer of graphics processing units (GPUs), is expected to release new AI chips specifically tailored for the Chinese market. These chips will likely offer competitive performance while adhering to US export restrictions. NVIDIA has already taken similar steps in the past, creating modified versions of its high-end GPUs to comply with regulations while maintaining a presence in the critical Chinese market. NVIDIA’s commitment to the Chinese market remains strong, as it is one of the most important markets for the company.
AMD’s Strategy
AMD is actively developing AI chips tailored for the Chinese market to comply with U.S. export restrictions. The company plans to release the Radeon AI PRO R9700, a workstation GPU designed for AI tasks, by the third quarter of 2025. This chip is engineered to meet U.S. export regulations while serving the growing demand in China. AMD’s strategy aligns with NVIDIA’s, focusing on delivering viable AI solutions without violating U.S. export rules.
Impact on the Chinese AI Market
The availability of these new, compliant AI chips will significantly impact the Chinese AI market. While these chips may not match the performance of unrestricted high-end products, they will still provide substantial computing power for various AI applications. This ensures that Chinese companies can continue to develop and deploy AI technologies in areas like facial recognition, natural language processing, and autonomous driving, even within the constraints of the US export controls.
Competitive Landscape
The introduction of these chips will likely intensify competition within the Chinese AI market. Local chip manufacturers are also striving to develop their own AI chips, aiming to reduce reliance on foreign technology. The presence of NVIDIA and AMD with their compliant chips will create a dynamic environment, pushing innovation and potentially leading to more accessible AI solutions for Chinese businesses.
