By OKOSODO FAVOUR | MAY 26, 2025
Nvidia is reportedly launching a lower-cost AI chip tailored for China, aiming to stay competitive despite tightened U.S. export restrictions.
The chip, built under Nvidia’s latest AI generation, will feature scaled-down specs to comply with the U.S. bandwidth cap of 1.7TB/s. Mass production starts next month.
Priced between $6,500–$8,000, the new chip undercuts the H20 model, which sold for up to $12,000—helping Nvidia retain ground in China’s $50B data centre market.
Nvidia’s market share in China has plunged from 95% to 50%. Meanwhile, Chinese tech giant Huawei is readying its Ascend 910D chip to rival Nvidia.
With Nvidia set to announce earnings on May 28, analysts expect a 66% revenue boost to $43.4B and $21.3B in net income, even as China challenges persist.