U.S. Export Restrictions on H20 AI Accelerator to China Persist; Will NVIDIA Shift to Blackwell “GDDR7” AI Chips?

Recent developments indicate that the Trump administration remains firm on its stance regarding export restrictions for NVIDIA’s H20 AI accelerator, compelling the company to explore alternative solutions.

NVIDIA Faces Challenges in Complying with U. S.Export Restrictions and Maintaining Its China Operations

The U. S.government has intensified its efforts to limit China’s access to advanced AI technologies. Under the Biden administration, NVIDIA has been actively adjusting its product lineup to align with these restrictions. Most recently, President Trump prohibited the sale of the highly sought-after H20 AI accelerator to Chinese customers. According to Kevin Hassett, the Director of the National Economic Council (NEC), there appears to be little hope for NVIDIA to resume sales of their H20 AI GPU to China, despite the U. S.indicating a milder approach to chip export controls.

During an inquiry about the potential easing of export controls leading to a lift on the H20 ban, Hassett confirmed that no such options are currently being considered. This effectively puts an end to NVIDIA’s business prospects with the H20 AI in China. Team Green has indicated that these restrictions have resulted in significant financial losses, estimating “tens of billions”lost at a time when the demand for the H20 AI accelerator was exceptionally high.

NVIDIA's AI Chip Renting Services In China Are Much Cheaper Compared To The US, For As Little As $6/Hr

NVIDIA’s CEO, Jensen Huang, has remarked that further revisions to the Hopper product line are not feasible, suggesting the need for a completely new generation tailored for the Chinese market. Reports indicate that NVIDIA plans to roll out a new Blackwell chip, which may comply with U. S.import restrictions by incorporating GDDR7 memory, akin to their RTX 6000 ADA product series. This strategy suggests that NVIDIA is poised to offer a product comparable in performance to its workstation GPUs, likely leveraging its CUDA architecture to boost sales.

The ongoing U. S.-China chip confrontation shows no signs of resolving soon, leaving NVIDIA with the challenge of satisfying both nations’ demands to safeguard its business interests. Observing how Team Green adapts and evolves within the Chinese market will be crucial as limited opportunities continue to arise.