3 days ago
Nvidia developing China-specific AI computer chip that can form ‘clusters': report
Nvidia is reportedly developing a new China-specific computer chip that can be connected into high-powered 'clusters' needed to power artificial intelligence models – despite the Trump administration's move to tighten export controls on AI chips.
The chip, which is being referred to as the B30, is already drawing interest from China-based tech giants like TikTok parent ByteDance, Alibaba and Tencent, The Information reported on Friday.
Nvidia, led by CEO Jensen Huang, has told customers that it plans to produce more than 1 million B30 chips this year, the outlet said. The chips are said to be compliant with the White House's stricter export controls, which have focused on individual chips rather than clusters.
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3 Nvidia said it expects to lose $8 billion in China chip sales this quarter.
REUTERS
Nvidia representatives did not immediately return a request for comment.
Shares of Nvidia were up about 1% in trading Monday.
The chips in development would mark the latest bid by Nvidia to preserve access to the lucrative China market. US officials have grown increasingly wary of allowing Beijing to access the most powerful US-made chips over fears that China will surpass the US in the race to develop advanced AI.
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3 Nvidia CEO Jensen Huang is pictured.
REUTERS
The most recent restrictions imposed in April blocked Nvidia from selling its H20 chip, which had been developed specifically for China in response to earlier export controls.
Last month, Nvidia said it expected revenue of about $45 billion in the fiscal second quarter – with a loss of $8 billion in expected sales of H20 chips that would have been shipped to China.
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During the company's May 28 earnings call, Huang acknowlegged that Nvidia was 'considering' releasing a new chip in China that would comply with the export controls.
3 Nvidia is developing a new chip for China.
REUTERS
'The key is to understand the limits and see if we can come up with interesting products that could continue to serve the Chinese market. We don't have anything at the moment, but we're considering it,' Huang said at the time.
'Obviously, the limits are quite stringent at the moment. And we have nothing to announce today. And when the time comes, we'll engage the administration and discuss that,' he added.
