NVIDIA to Launch Affordable “China-Specific” Blackwell AI Chip Priced Between $6,500 and $8,000

NVIDIA is preparing to introduce its next-generation chip tailored specifically for the Chinese AI market within the next few months. This new product is anticipated to provide a cost-effective solution for clients, positioning NVIDIA to reclaim its competitive stance in a rapidly evolving landscape.

Introducing the Blackwell Chip: A Budget-Conscious Option for China

The upcoming Blackwell chip is expected to be priced at approximately half of the H20 AI accelerator. This strategic move comes as NVIDIA faces increasing rivalry, particularly from Huawei, amid a fluid geopolitical climate that poses uncertainties for U. S.tech companies. A recent report from Reuters indicates that NVIDIA aims to swiftly regain its market presence in China, with production slated to begin as early as next month and availability anticipated in July.

However, this attractive pricing comes with compromises. The Blackwell chip will feature GDDR7 memory as opposed to the high-bandwidth memory (HBM) utilized in NVIDIA’s premium products, a decision made to align with U. S.export regulations. Additionally, the chip will not incorporate TSMC’s CoWoS technology, leading to performance limitations. As a consequence, the disparity in AI performance between Chinese and Western technologies may widen further.

NVIDIA H100 AI GPU SXM to PCIe Adapter Board Model

The impact of U. S.restrictions on NVIDIA’s revenue from China has been substantial, particularly following the initial restrictions imposed by the Biden administration. The company’s earnings are not limited to the H20 AI accelerator, as it previously profited from selling “millions”of AI GPUs, including the H100 and A100 models. NVIDIA CEO Jensen Huang has characterized China as a $50 billion opportunity, yet these restrictions have slashed NVIDIA’s market share down to just 50%.This significant drop has raised concerns about potential replacements in the market.

Despite the limitations, the affordability of the Blackwell chip is likely to attract a broad customer base, with NVIDIA projecting sales of over one million units by year-end. However, it is important to note that while Team Green’s latest offering promises to be economically appealing, it may not be the top-performing option available when compared to Huawei’s Ascend 910C chip, which is expected to surpass it in capabilities. To counteract this, NVIDIA plans to leverage its robust software ecosystem, especially CUDA, which could provide a significant advantage in the competitive landscape.

Source & Images