Nvidia to launch cheaper Blackwell AI chip for China after US export curbs, sources say
Nvidia
will launch a new artificial intelligence chipset for China at a significantly lower price than its recently restricted H20 model and plans to start mass production as early as June, sources familiar with the matter said.
The GPU or graphics processing unit will be part of Nvidia's latest generation Blackwell-architecture AI processors and is expected to be priced between $6,500 and $8,000, well below the $10,000-$12,000 the H20 sold for, according to two of the sources.
The lower price reflects its weaker specifications and simpler manufacturing requirements.
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
default
, selected
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Play War Thunder now for free
War Thunder
Play Now
Undo
It will be based on Nvidia's RTX Pro 6000D, a server-class graphics processor and will use conventional GDDR7 memory instead of more advanced high bandwidth memory, the two sources said.
They added it would not use Taiwan Semiconductor Manufacturing Co's advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging technology.
Live Events
The new chip's price, specifications and production timing have not previously been reported.
Discover the stories of your interest
Blockchain
5 Stories
Cyber-safety
7 Stories
Fintech
9 Stories
E-comm
9 Stories
ML
8 Stories
Edtech
6 Stories
The three sources Reuters spoke to for this article declined to be identified as they were not authorised to speak to media.
An Nvidia spokesperson said the company was still evaluating its "limited" options. "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."
TSMC declined to comment.
Market share plunge
China remains a huge market for Nvidia, accounting for 13% of its sales in the past financial year. It's the third time that Nvidia has had to tailor a GPU for the world's second-largest economy after restrictions from U.S. authorities who are keen to stymie Chinese technological development.
After the U.S. effectively banned the H20 in April, Nvidia initially considered developing a downgraded version of the H20 for China, sources have said, but that plan didn't work out.
Nvidia CEO
Jensen Huang
said last week the company's older Hopper architecture - which the H20 uses - can no longer accommodate further modifications under current U.S. export restrictions.
Reuters was unable to determine the product's final name.
Chinese brokerage GF Securities said in a note published on Tuesday that the new GPU would likely be called the 6000D or the B40, though it did not disclose pricing or cite sources for the information.
According to two of the sources, Nvidia is also developing another Blackwell-architecture chip for China that is set to begin production as early as September. Reuters was not immediately able to confirm specifications of that variant.
Nvidia's market share in China has plummeted from 95% before 2022, when U.S. export curbs that impacted its products began, to 50% currently, Huang told reporters in Taipei this week. Its main competitor is Huawei which produces the Ascend 910B chip.
Huang also warned that if U.S. export curbs continue, more Chinese customers will buy Huawei's chips.
The H20 ban forced Nvidia to write off $5.5 billion in inventory and Huang told the Stratechery podcast on Monday that the company also had to walk away from $15 billion in sales.
The latest export restrictions introduced new limits on GPU memory bandwidth - a crucial metric measuring data transmission speeds between the main processor and memory chips. This capability is particularly important for AI workloads that require extensive data processing.
Investment bank Jefferies estimates that the new regulations cap memory bandwidth at 1.7-1.8 terabytes per second. That compares with the 4 terabytes per second that the H20 is capable of.
GF Securities forecast the new GPU will achieve approximately 1.7 terabytes per second using GDDR7 memory technology, just within the export control limits.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
35 minutes ago
- Time of India
Bullish on private banks; 3 stocks to bet on: Rajat Sharma
Rajat Sharma , Founder & CEO, Sana Securities , says he favours private banking, highlighting HDFC Bank , Axis Bank , and Federal Bank . These banks benefit from non-interest income. Sharma is also optimistic about the IT sector, noting attractive valuations for companies like Infosys and TCS . Increased spending in the US will benefit Indian IT firms. He believes these tech giants will remain core portfolio components. Which themes are looking good to you right now? What are you bullish on? Rajat Sharma: Yes, in terms of themes, clearly with it is almost a given that next week there will be a rate cut in the MPC's meeting, so banking of course is one sector that I have been bullish on for a very long time because private banking in particular has already anyways been trading fairly cheap compared to a lot of the other pockets of the market. And with RBI's meeting next week with where inflation is, it is a given that there would be a 25 bps rate cut, so that would be an additional benefit which the banking sector will get. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. But the major reason why I am bullish on banking, in particular private banking, is because the Union Budget that we had this year which increased the tax slabs and made income up to Rs 12 lakh tax-free, the benefit of that you will start seeing from the FY26 which is the financial year which has just started. So, while a lot of people are talking about consumption spending going up and discretionary spending going up, a clear beneficiary, the first beneficiary and the biggest beneficiary of this new tax policy would be banking because that is where money will come in the first place. If you talk about things that are working for the bank, the tax policies, the new tax structure is really favourable, repo rate will be revised to 5.75% so more money in the hands of the banks and over the last two-three years also tax policies have been changed in such a way that a lot of the advantage is given to mutual funds where people were taking their money from banks, particularly debt mutual funds which got indexation benefit and 20% tax post that – has been taken away. Gradually, a lot of policies have started favouring banking and I like private banking. The top picks I have in that sector would be clearly HDFC Bank and Axis Bank which also by the way get a lot of their revenue from non-interest income, another area of banking which I am really positive on, HDFC and Axis both get about 18% to 19% of their total income from fee-based income distribution of third-party products, mutual funds, the AMC business, and the other bank I am bullish on is Federal Bank. Live Events You Might Also Like: CA Rudramurthy BV on crucial Nifty levels to watch; 2 stocks to buy So, these three banks and clearly a week before the MPC meeting banking is definitely one sector which I am really bullish on and bullish on for the next three, four, five years kind of perspective. India still remains an underbanked country. What is your view on the IT sector? Do you continue to be optimistic on that one? And also, how do you see Indian IT companies navigating the whole AI transition play? Rajat Sharma: If you look at the history of the Indian IT sector , it always trails the US IT. Whatever happens there both in terms of development and adoption to new technology whether it was digital around a decade back or it is AI now and also in terms of earnings and valuations, so while US tech companies have run up a lot in the last one year or so, Indian tech has been struggling mainly because there was a negative sentiment around Indian IT companies, still relying on cloud and digital and basically the legacy business of programming and not really adopting to the AI revolution. In fact, because of AI, there were a lot of job cuts which we saw at Infosys and stuff. So, my view is that they got affected because there was a curtailed spending in the US on fears of a recession in US markets on account of Trump's tariffs policies or whatever. Now US and European companies have started spending more, a trend which we have started seeing and given where Indian IT companies are, the large IT companies, Infosys and TCS and Coforge and Mphasis a lot of these companies will benefit from increased spending in the US. I was looking at Infosys, the dividend yield is almost close to 2.75%. For tech companies to be trading at 22-24 kind of price to earnings multiple is a very attractive level to buy. These companies are not going anywhere. They are, were, and will always be part of the core portfolio in India. They will be part of Nifty for all times to come, as would a lot of these large tech companies. So, this is one sector which from a valuation perspective is really attractive and things should turn around for them given that the whole tariff business is behind us and there is no fear of a recession in the US as much as there was some time back. You Might Also Like: Narendra Solanki on where he is overweight and where underweight in current market
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
India's GDP growth likely accelerated in Q4 on rural demand, state spending
Rural consumption improved during the quarter, while urban demand indicators remained mixed Reuters NEW DELHI India's economic growth likely picked up pace in the January-March quarter, buoyed by stronger rural demand and higher government spending, even as private firms delayed investments amid global uncertainties. Gross domestic product (GDP) is expected to have grown 6.7 per cent year-on-year in the March quarter, up from 6.2 per cent in the previous three months, according to a Reuters poll of economists. Rural consumption improved during the quarter, while urban demand indicators remained mixed, said Gaura Sen Gupta, chief economist at IDFC First Bank Economic Research. Investment was supported by government spending, she said. The Ministry of Statistics will release March-quarter GDP data and provisional estimates for the 2024-25 (April-March) fiscal year on Friday at 1030 GMT. Some economists expect GDP growth to print significantly above expectations due to a fall in government subsidies. But they caution that true economic growth, as measured by gross value added (GVA), will be lower than the headline number. The calculation of GDP includes indirect taxes and government subsidy payouts which tend to be volatile, while GVA strips out those components. JP Morgan expects March quarter GDP growth at 7.5 per cent year-on-year, while GVA growth is seen lower at 6.7 per cent compared to 6.2 per cent in the previous quarter. India's central bank, the Reserve Bank of India (RBI), expects GDP growth at 6.5 per cent in the fiscal year beginning April 1. At that rate, India remains the fastest growing among major economies and its size could match Japan's this year at $4.18 trillion, according to projections by the IMF. Economists said while the global outlook has weakened amid escalating trade tensions, India appears relatively insulated due to lower dependence on goods trade, tax cuts announced by the government in February and lower interest rates. "Despite the various downside risks, we think the policy coordination between the government and the RBI remains the strongest at this juncture," said Kaushik Das, India chief economist at Deutsche Bank, adding that authorities are showing strong resolve to do "whatever it takes" to support growth. Retail inflation, which eased to a near six-year low of 3.16 per cent in April, alongside a favourable monsoon forecast, is expected to keep food prices in check and pave the way for another policy repo rate cut by the RBI in June. The government's income tax relief, recent fiscal measures and central bank rate cuts, could lift growth to 6.3 per cent-6.8 per cent in the current fiscal year, the finance ministry said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Hindustan Times
2 hours ago
- Hindustan Times
India's GDP likely to grow in March quarter on rural demand, state spending: Report
India's economic growth likely picked up pace in the January–March quarter, buoyed by stronger rural demand and higher government spending, even as private firms delayed investments amid global uncertainties. Gross domestic product (GDP) is expected to have grown 6.7% year-on-year in the March quarter, up from 6.2% in the previous three months, according to a Reuters poll of economists. Rural consumption improved during the quarter, while urban demand indicators remained mixed, said Gaura Sen Gupta, chief economist at IDFC First Bank Economic Research. Investment was supported by government spending, she said. The Ministry of Statistics will release March-quarter GDP data and provisional estimates for the 2024-25 (April-March) fiscal year on Friday at 1030 GMT. Some economists expect GDP growth to print significantly above expectations due to a fall in government subsidies. But they caution that true economic growth, as measured by gross value added (GVA), will be lower than the headline number. The calculation of GDP includes indirect taxes and government subsidy payouts which tend to be volatile, while GVA strips out those components. JP Morgan expects March quarter GDP growth at 7.5% year-on-year, while GVA growth is seen lower at 6.7% compared to 6.2% in the previous quarter. India's central bank, the Reserve Bank of India (RBI), expects GDP growth at 6.5% in the fiscal year beginning April 1. At that rate, India remains the fastest growing among major economies and its size could match Japan's this year at $4.18 trillion, according to projections by the IMF. Economists said while the global outlook has weakened amid escalating trade tensions, India appears relatively insulated due to lower dependence on goods trade, tax cuts announced by the government in February and lower interest rates. "Despite the various downside risks, we think the policy coordination between the government and the RBI remains the strongest at this juncture," said Kaushik Das, India chief economist at Deutsche Bank, adding that authorities are showing strong resolve to do "whatever it takes" to support growth. Retail inflation, which eased to a near six-year low of 3.16% in April, alongside a favourable monsoon forecast, is expected to keep food prices in check and pave the way for another policy repo rate cut by the RBI in June. The government's income tax relief, recent fiscal measures and central bank rate cuts, could lift growth to 6.3%–6.8% in the current fiscal year, the finance ministry said.
