Nvidia and AMD Release New AI Chips to Comply with US Export Restrictions in China
Are you wondering how Nvidia and AMD plan to continue selling AI chips in China despite stringent U.S. export restrictions? With advanced semiconductor exports tightly controlled, these tech giants are adapting by introducing new AI GPUs designed specifically for the Chinese market. This strategic move allows them to meet regulatory requirements while continuing to serve growing AI workload demands in China.
To comply with U.S. export controls on cutting-edge semiconductor technology, Nvidia and AMD are preparing to launch tailored AI chips that meet the regulatory standards. According to Taiwanese tech news outlet DigiTimes, Nvidia will sell a simplified version of its AI GPU, known as the “B20,” while AMD is introducing the Radeon AI PRO R9700 workstation GPU aimed at AI applications. These new products are expected to hit the Chinese market as early as July 2025, ensuring both companies maintain their foothold in a key AI growth region.
Nvidia is also developing a budget-friendly AI chip built on its latest Blackwell architecture, specifically designed for China’s market. This chip is anticipated to be priced between $6,500 and $8,000, significantly cheaper than Nvidia’s premium H20 GPUs, which retail for $10,000 to $12,000. This pricing strategy helps Nvidia cater to China’s evolving AI infrastructure needs while complying with export restrictions.
The impact of these restrictions has been substantial for Nvidia. The company recently announced a $4.5 billion charge in Q1 2025 related to licensing rules that limit its ability to sell the H20 AI chip in China. Additionally, Nvidia was unable to ship approximately $2.5 billion worth of H20 GPUs during the same period. Forecasts suggest that licensing and export constraints could reduce Nvidia’s Q2 revenue by up to $8 billion, underscoring the significance of adapting their chip offerings for the Chinese market.
This development highlights how AI chipmakers like Nvidia and AMD are navigating the complexities of geopolitics and technology restrictions while continuing to innovate and meet AI demand globally. With AI workloads expanding rapidly across industries, these new GPU releases tailored for China demonstrate the companies’ commitment to maintaining growth and complying with international trade policies.
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