NVIDIA CEO Unveils Upcoming Blackwell Chip for China, Confirms H2O Modifications Are No Longer Possible

NVIDIA is gearing up to launch a more powerful chip targeting the Chinese artificial intelligence (AI) market. CEO Jensen Huang recently shared insights indicating that the company will not reduce its Hopper chip production any further.

NVIDIA’s Strategic Commitment to China: Competing With Huawei Using Blackwell and Hopper AI Chips

In light of the recent H20 export restrictions imposed by the United States, NVIDIA is actively exploring fresh strategies to retain its foothold in China. According to Huang, during an interview with Taiwanese media (via Reuters), the next chip designed for the Chinese market will not come from the Hopper series. Due to US compliance issues, NVIDIA plans to pivot towards a new architecture—most likely Blackwell.

According to a report from Nikkei Asia, while NVIDIA considers introducing a new variant of the Hopper chip aimed at China, it will not serve as the flagship option. This time around, the company intends to incorporate GDDR7 memory modules, moving away from High Bandwidth Memory (HBM) to better align with bandwidth requirements. This upcoming model is expected to draw on lessons from NVIDIA’s RTX PRO GPUs, utilizing the Hopper architecture but optimized for the Chinese landscape. Additionally, the anticipated Blackwell chip will also adopt GDDR7, marking a significant shift in NVIDIA’s approach to meet performance criteria in China.

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Noteworthy is the fact that despite these changes, NVIDIA’s forthcoming “China-specific”chips are anticipated to outperform Huawei’s existing products. This advantage stems from NVIDIA’s cutting-edge architectural designs and a robust software ecosystem. However, the ongoing uncertainty regarding the availability of NVIDIA products has compelled several Chinese firms to shift towards domestic solutions, like Huawei’s Ascend chips. This competitive landscape is a concern for NVIDIA, prompting Jensen to label Chinese competitors as “formidable.”

As NVIDIA continues to evolve its strategies in China, it remains to be seen how the company will navigate the complexities of geopolitical relations, especially with strengthening ties in the Middle East. Jensen’s previous statements about maintaining a commitment to China will likely be put to the test as NVIDIA charts its course in this dynamic environment.

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